Inflation does not seem to slow down, which has made it harder for people to make ends meet. As per the U.S Statistics Bureau, the Consumer Price Index increased 8.3% from a year ago, higher than the 8.1% estimate. Although it was lesser than the March peak, inflation is still rising at the fastest annual speed in four decades.
The cost of food is increasing at the fastest pace in more than 41 years. As a result, the shelter index, which comprises about one-third of the CPI weighting, was up 5.1% annually, its swiftest gain since March 1991.
When wages increase slower than inflation, those paychecks will not go as far at the grocery store and the gas pump. As a result, these two most vulnerable sections have been squeezed.
As of March, about two-thirds, or 64%, of the U.S population is living paycheck to paycheck, which was 65% in 2020, as per one of the reports published by LendingClub.
People facing various hurdles in affording their lifestyle tend to be dependent on credit cards and carry higher monthly balances, making them financially weaker, revealing the survey of more than 2,600 individuals.
Overall, credit card balance increased Y-o-Y, securing US$ 841 billion in the first three months of 2022, reveals the report of the Federal Reserve Bank of New York.
With this rate, the balance could soon procure levels amid higher costs for gas,
groceries, and housing, among other requirements, as Ted Rossman, an analyst at CreditCards.com.
In addition, anyone with debts will also experience the annual percentage rate on their credit card head higher since the Federal Reserve increases interest rates to control the soaring prices.