US Consumers Absorb 3.4% Higher Living Costs as Debt Rises
Updated
Updated · NPR · Aug 14
US Consumers Absorb 3.4% Higher Living Costs as Debt Rises
3 articles · Updated · NPR · Aug 14
Summary
U.S. living costs remained 3.4% above a year earlier, and households are still spending even as many rely more heavily on credit card debt.
Gas and grocery bills are driving the squeeze, while retailers have largely kept prices elevated by passing through higher input costs and finding consumers still tolerate them.
Since 2019, groceries are up 33%, shelter 35% and family health insurance 38%, underscoring why many Americans feel inflation is worse than the latest annual rate suggests.
The Fed is holding off on a rate move because a weaker job market makes both hikes and cuts risky, leaving policymakers stuck between persistent inflation and slowing growth.
That mix raises the risk of stagflation if households eventually start defaulting on credit cards, mortgages or car loans after 64 straight months of inflation above 2%.