Hold onto your wallets, inflation is costing the average U.S. household nearly $300 more a month, according to Moody Analytic analysis, CNBC reported.
“It is going to get worse before it gets better,” Moody’s senior economist Ryan Sweet said.
Sweet, who performed the analysis, said that consumers will pay an additional $296 in monthly costs. According to Sweet, this figure is based upon the most recent readings on consumer prices. They rose 7.9% in February, compared with one year ago, according the U.S. Department of Labor.
Prices for gas, food and housing drove the February price increases to an all-time high, CNN Business.
The biggest increase in food prices since July 1981 was 7.9% over the past 12 month. According to the news outlet, grocery store prices rose by 8.6% in the same time period, which is the fastest increase since April 1981.
Inflation rose by nearly a third in February due to a 6.6% rise in gasoline prices. CNN reported that they have increased 38% in the past year.
An analysis by Wells Fargo entitled, “Inflation: Same Storm, Different Boats,” really sums up what Americans are facing, which is the strongest inflation in nearly 40 years.
Based on the Consumer Expenditure Surveys (CPI), three demographic groups were identified as having the greatest pinch.
According to the survey, inflation is half a point more common in middle income consumers than it is for those who earn the most and least.
Wells Fargo reported that Latinos and Hispanics had the greatest jumps in living costs relative to other groups.
The increase will be felt by millennials more than their boomer counterparts. The survey found that inflation among consumers aged 35-44 in the past year was more than one point higher than for those 65 and over.