A recent Moody’s report declared that the worst of U.S. inflation may be over. That was before new data showed that inflation surged even higher in January to levels not seen since 1982. In short, we may not be out of the woods yet.
The January Moody’s report showed that rapid rise in inflation is costing the average household an extra $250 a month.
This amount differs across income cohorts. For instance, those aged 35 to 44 are spending $303 more a month, those aged 45 to 54 are spending $305 more a month and those aged 65 and older are spending $194 more a month.
Additionally, the consumer price index (CPI) for rent of primary residence increased by 0.4%, with inflation in this category expected to increase.
“Rents are normally fairly sticky but are set to accelerate later this year and peak in the summer,” the report states. “Stronger rental inflation, as measured by the CPI, will likely be more visible by next summer with rates up around 6% on a year-ago basis, which would be the strongest in decades.”
Rent is not the only category that felt the weight of inflation at the end of last year. The CPI for food was up by 0.5%, for used car prices by 3.5%, for airline fares by 2.7% and for apparel by 1.7%.
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