Americans haven't had to worry too much about factoring inflation into their budget for the past four decades. That's changing in 2022.
The red-hot inflation expected to last throughout the year will leave the average US household spending $5,200 more compared to the year prior, Bloomberg economists Andrew Husby and Anna Wong said in a Tuesday article. That boils down to an extra $433 per month on the same goods and services as last year.
Strong wage growth and excess savings from earlier in the pandemic will help soften the blow, but looming economic trends stand to worsen the inflation problem over the next several months, the team said. "Accelerated depletion of savings will increase the urgency for those staying on the sidelines to join the labor force, and the resulting increase in labor supply will likely dampen wage growth," they said. In other words, as people spend their built-up savings, they'll need to go back to work, and employers won't have to pay as much to lure them back.
The estimate offers yet another bleak characterization of this year's sky-high inflation. Closely-watched inflation gauges like the Consumer Price Index have already shown prices soaring
Please, sir, I want the same drug that they are taking.
Employers should budget an extra $5200 for salary increases for employees. Sounds kind of outrageous doesn’t it This money just doesn’t appear out of thin air - reports show most Americans couldn’t afford a surprise $1000 bill. $5200, without increased pay, isn’t happening.
traderDanielle
Should retailers apologize for rising prices?
traderDanielle $5,200 more to cover costs? Check the weekly supermarket flyers, cut those cyber coupons. Indulge in a few less Boba Teas. Covered calls when it makes sense, the basics can add up. Review subscriptions. Discover Card ? 5% off on fuel currently. 👀🔎🔦🪙
traderDanielle Just need to ask for $3.00 more an hour 😂😂😂
彭博社经济学家估计，美国人今年应该额外预算5200美元，以支付不断上涨的物价
DEFINITELY didn't get a raise that big. Not by a long shot...