By Nathalie Voit
New data from Moody’s Analytics revealed red-hot inflation is costing Americans hundreds of extra dollars each month.
Four-hundred and sixty dollars, to be exact. That’s according to a recent Moody’s weekly market report that compared the average inflation rates in 2018 and 2019 against today’s sky-high rates.
Economists at Moody’s came up with the figure by comparing prices for goods and services in May to what households would have paid for the same items in 2018 and 2019 when inflation was running at a standard pace of 2.1%.
In contrast, the latest government data showed consumer prices in May accelerating by 8.6% over the year. This was the fastest rate of growth since December 1981 and significantly higher than market projections.
As inflation continues its four-decade high streak, the share of consumers blaming their worsening personal finances on higher prices is growing.
Moody’s economists Bernard Yaros and Matt Colyar noted this phenomenon was unlikely to change so long as the cost of everyday essentials like groceries and gasoline remains elevated.
“The sharp acceleration in inflation has coincided with the steady decline in [consumer] sentiment since early 2021,” the economists wrote.
Click here to access the full report.