According to a recent Morning Consult report, older generations are showing greater degrees of worry about inflation and price increases.
According to Morning Consults’ U.S. Supply Chains and Inflation Report, 78 percent of Baby Boomers and 67 percent of Gen Xers said they were “extremely concerned” about inflation in June. Millennials only make up 55% of the population, and Gen Z people make up less than 50%.
Consumer Price Index (CPI) hit an annual rate of 8.6 percent in May, marking a new 40-year high for inflation with no signs of abating, according to the Bureau of Labor Statistics’ most recent data (BLS). That followed an April decrease in inflation to 8.3 percent yearly. Inflation rose by 1% on a monthly basis from April to May.
According to the research, “Spending growth encountered accumulating headwinds in June, as consumers were increasingly inclined to trade down or opt out of purchases when faced with higher-than-expected prices.” Consumers in June “began to progressively oppose price increases for services, potentially postponing the return to pre-pandemic spending habits, even as demand for durable goods and housing had already started to wane in May.”
If you are having trouble with growing prices, you might want to think about getting a personal loan to assist you pay off high-interest debt.
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ANOTHER Interest Rate Increase Is Likely This Month, According to Fed Minutes
As inflation soars, Americans cut back on their spending. According to the survey, Americans are now forgoing purchases as prices rise in favor of less expensive alternatives.
Travel is one key area where growing costs have an impact. According to the latest study, increased petrol prices may lead to more Americans taking vacations during the summer driving season.
Adults reported driving less over the past month in 45 percent of cases in June, an increase from the 38 percent of consumers who stated the same in May. The explanation given by about 90% of people who stated they were driving less is because of increased petrol prices.
According to the Morning Consult report, “the share of nonpurchasers due to sticker shock exceeded those who were willing to absorb price increases in June for 13 out of 17 product and service categories tracked by the index, an indication of just how widespread price sensitivity has become for consumers.”
Refinancing your private student loans can help you lower your monthly payments if you’re trying to cut costs.
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JOBS GROWTH IN JUNE DISCLOSED AMID RECESSION FEARS
HOW TO REDUCE MONTHLY OUTGOINGS There are a number of actions Americans may take to reduce their monthly spending and better manage rising prices as inflation soars. To name a few:
REFINANCE YOUR HOUSE LOAN Concerns have been raised by the over 20 percent yearly increase in home prices as well as by the rising mortgage rates.
While durables continued to be the most affected, services, which are sometimes more difficult to trade down on because to their individuality, experienced the most increase in price sensitivity in the previous month, according to a Morning Consults analysis. “Housing payments, typically the greatest monthly expense for households, were among the service categories most adversely affected, with rising mortgage rates escalating affordability concerns.”
Refinancing might help you save money if your mortgage payment is projected to increase.
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MAY SEES A COOL DOWN IN HOME PRICES, BUT THEY STAY HISTORICALLY HIGH
TAKE A NEW AUTO INSURANCE Even the price of purchasing a new car is historically high, and gas prices continue to be high. Drivers can, however, make additional efforts to cut down on their auto expenses. For instance, switching auto insurance companies may enable you to spend less each month for your premiums.
To speak with a car insurance specialist and get all of your questions addressed, contact Credible.
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