SURGING inflation is causing ordinary American households to fork out US$445 (RM2,107.97) more than a year ago, according to Moody’s Analytics, reported Xinhua.

Senior economist Ryan Sweet calculated the figure after inflation reached 8.2% in September. 

The United States Labour Department reported last week that the US consumer price index rose 0.4% in September, and surged 8.2% from a year ago, with core inflation soaring to four-decade high. 

As part of its calculation, Moody’s compared the average US households spent in September to how much they spent in 2018 and 2019, when inflation hovered around 2.1%. 

Rampant inflation has impacted all US economic sectors, with the price of groceries skyrocketing by 13% in September.

In September, 24% of shoppers said they bought fewer items than usual, according to Morning Consult. As much as 72% of US adults said they were very concerned about the rapidly rising cost of food. 

The significant increase in the price of daily items is a cost many Americans can no longer afford, according to Jacob Channel, senior economist at LendingTree, as quoted in the New York Post.

“For many households, spending hundreds of extra dollars each month on the same basic necessities that they’ve always bought might not be possible and, as a result, some – if they haven’t already – will likely have to resort to cutting back and reducing their standards of living,” Channel told the news outlet.

According to the Federal Reserve’s Beige Book released Wednesday, price growth in the US remained elevated, though some easing was noted across several districts. 

Significant input price increases were reported in a variety of industries, though some declines in commodity, fuel, and freight costs were noted, the survey showed. 

Economists warn that Americans should brace for more pain as recession risks grow. According to the latest Bloomberg Economics model projections, a US recession is effectively certain in the next 12 months. – Bernama, October 21, 2022.