Inflation is a serious problem that is hitting Americans who do not have millions of dollars in the bank especially hard. Many people are finding it increasingly difficult to buy the essentials that their families depend on, with some even resorting to drastic measures just to put food on the table. Americans typically have the luxury to not have to dig extremely deep in their pockets to provide for themselves but we can no longer say that.
With the ever-present threat of inflation, more and more Americans are being forced to dip into their hard-earned savings in order to keep up with the rising prices of everyday life. Annual inflation managed to slow to 6.4 percent in January, which is clearly not enough for citizens to make ends meet without turning to their savings accounts for assistance. This reality is highly concerning, as it reveals a profound impact that economic pressures have imposed on individuals just trying to get by. Is this just the beginning of what’s to come?
The Epoch Times reports,
The Country Financial Security Index reports that more Americans are using their savings to make ends meet amid crippling inflation.
As a result of the data, the overall rate of inflation in January declined to 6.4 percent, down from 6.5 percent in December 2022, according to the Bureau of Labor Statistics (BLS).
That was still higher than the 6.2 percent economists had expected and up 0.5 percent from a month earlier, while food prices remained stubbornly high.
A nationally representative sample of 1,029 adults age 18 and older was surveyed by Ipsos between Feb. 3 and Feb. 5, 2023, using their probability-based Knowledge Panel.
Study results indicate that millennials are feeling inflation’s effects more and taking more measures to save and make money as a result.
The study authors wrote, “Millennials are more likely to have taken money out of their savings, put less money in their savings or investments, or delayed a major purchase or vacation. Both Gen Z and millennials are more likely to have borrowed money from friends and family than Gen X or baby boomers.”
In the past year, staple items, like eggs and bread, have increased across the board, while rice and pasta increased by 49 percent.
According to a separate BLS report, average hourly earnings fell by 0.2 percent in January and were down by 1.8 percent over the past year.
Generation Z is the latest group of young adults starting out, and it’s an immense challenge when faced with an economic landscape powered by unpredictably high housing and product prices. This has forced many to remain living with their parents while they save, because in order to survive on their own money they need to be able to afford rent payments as well as bills. Unfortunately, due to a chaotic economy, this may become even harder for everyone for the next two years; if people can’t keep up now, there will certainly be consequences in terms of financial security. However, Americans are resourceful when faced with hardship.
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