Why Inflation Costs Households an Extra $341 But Has Little Impact on Retirees

It’s no secret that rising inflation is taking a toll on American households, with reports of consumer prices rising 8.3%.

According to Analysis by Ryan Sweet, Americans, who are senior directors of Moody’s Analytics, are paying an additional $341 per month for the same services and items compared to last year.

“It’s a little less than last month, but it’s still a significant burden on households,” Sweet said.

Grocery store costs increased 0.9% on a monthly basis and are estimated to have increased by 9.4% compared to last year. Egg prices rose 10.3% from the previous month, chicken prices rose 3.4%, and milk prices rose 3.1%. Butter rose 3.7% MoM and margarine rose 7.1%.

Energy prices fell 2.7% from March, but rose 30.3% from April last year. Airfare rose 18.6% from March and new car prices rose 1.7%.

However, retiree You may not feel as much financial pain as your family. Older people generally spend less on transportation and have the flexibility to buy less gasoline by combining carpooling or travelling.

Excluding rising health care costs, which increased by 6%, other spending categories for retirees could experience inflation of 1.5% to 2% per year.

Neglecting health care costs, retirees are likely to spend less overall on other categories by the time they reach 80.

People who feel the effects of inflation can use other methods to save money.​​

Money expert Sahirenys Pierce suggests making a meal plan to make the most of going to the supermarket.

Pierce plans meals around items on sale and makes three meals on Sunday.

Another suggestion is to take “staycations” or day trips instead of expensive vacations and get rid of subscriptions you don’t need.

US consumer price inflation slowed slightly last month, up 8.3% from April 2021. Photo: AFP / Frederick J. Brown

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