Inflation seems to have made quite an impact on the economy. However, even more so on the wages of the average Americans who are finding it hard to keep pace. Fox Business reports that the citizens feel the pinch and raised concerns about how the inflation may erode their purchasing power this year. A looming fear of the cost-of-living outpacing income might become a reality soon if it remained unchecked.
The General Feeling
The New York Times reports that there are concerns about the income not being able to match the rise of the cost of living, which is a true fear that has come to the fore. A study conducted by a financial services firm showed that a large percentage of Americans were casting aspirations on the current inflation status. Respondents had varying opinions when asked last year; this year, they feel there would be better scenes.
Middle-income families had an optimistic view of the entire scenario and felt they could pull through the situation though the increasing costs may impact their budgets in some time. The future uncertainty is looming large on many American families who feel it will impact their buying power and other necessities. Though the hourly wages have increased, it hasn’t quite helped because of the rising consumer prices. It’s still hard to play catch-up in such a situation.
What Inflation Has Done
A survey showed that a regular US worker happens to be in a worse situation than he would have been last year. The consumer price index rose by 7% from last December. It is the fastest increase that has ever been recorded except in the June of 1982 of 7.1%.
Inflation has had a profound impact on the presidential approval ratings defiantly as it took a nosedive because of the rising consumer prices. The rise is 0.5% in just a month. The consumer price index constitutes a wide range of goods such as groceries, rents, gasoline when calculating the inflation rates.