White-hot inflation has forced the average American household to cough up an extra $460 per month, as surging prices for food and fuel put family budgets across the nation under strain.
Moody’s Analytics senior economist Ryan Sweet calculated the figure based on data released Friday by the Bureau of Labor Statistics that showed the Consumer Price Index had jumped 8.6% in the 12-month period ending May 31 – the largest increase since December 1981.
Sweet compared average US household spending in May to what would have been spent in 2018 and 2019, when annual inflation averaged 2.1%.
“Having inflation at 8.5% on a year-ago basis, compared with the 2.1% average growth in 2018 and 2019, is costing the average household $346.67 per month to purchase the same basket of goods and services as they did last year,” Sweet told The Post. “However, the pure cost for households for having inflation running at 8.5% is $460.42 per month.”
Soaring inflation has some economic experts worried a recession is coming, as President Biden and the Federal Reserve face pressure to enact policies to slow down the increase.
The food index increased 10.1%, the first jump of of 10% or more since March 1981, BLS said. Grocery store price increases were even steeper — 11.9%, the largest 12-month spike since April 1979 — with staples such as meats, poultry, fish, and eggs increasing a whopping 14.2% and even fruits and vegetables going up 8.2%.