Inflation is a persistent problem
The consumer price index, which measures the average change in the prices of consumer goods and services, rose a more than expected 8.3% in August, driven by higher costs for food, housing and medical care.
Although real average hourly wages also rose 0.2% seasonally adjusted for the month, they remained down 2.8% from a year ago, meaning that those paychecks do not extend as far as before.
A separate Bank of America report found that 71% of workers believe their pay is not keeping up with the cost of living, bringing the number of people who feel financially secure to a five-year low.
Many Americans are dipping into their cash reserves and nearly half are taking on more debt.
According to Nayar, those who find it difficult to afford their daily lifestyle tend to rely more on credit cards and have a higher monthly balance, which makes them financially vulnerable.
“It’s no secret that prices have gone up for ordinary Americans – not only in the goods and services they buy, but also in the interest rates they pay to fund their lives,” he said. he declared. “This can have adverse consequences for someone who pays the minimum amount on their credit card each month.”
For its part, the Federal Reserve raised its target federal funds rate by 0.75 percentage points for the third consecutive time in order to calm runaway inflation.
The central bank has indicated that further increases are coming until inflation shows clear signs of receding.
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