The United States economy has broken some records lately, and not in a good way. Amid those records, the country has officially seen its biggest spike in inflation since 1982. As the cost for gas, food, rent, and more continues to increase, CNBC‘s Carl Quintanilla reported the exact percentage of the current rate of inflation.
What We Know:
- After months of rapid increase, U.S. inflation has officially seen its biggest spike in 40 years.
- More than half of Americans have now live paycheck to paycheck.
- U.S. inflation could see increasingly drastic spikes.
CNBC Anchor Notes America’s Record Inflation Spike
For months, media outlets have been documenting the rising cost of living as a result of overall inflation spikes. But on Thursday morning, CNBC anchor and longtime journalist Carl Quintanilla shared with followers the current rate of inflation, naming the Associated Press as his source.
(AP) — US inflation soared 7.9% over past 12 months, biggest spike since 1982.— Carl Quintanilla (@carlquintanilla) March 10, 2022
“US inflation soared 7.9% over [the] past 12 months, biggest spike since 1982,” read the anchor’s post.
In the comments, followers expressed their discontent.
“Good thing it only affects the poors (everyone except the wealthiest 10%) and pay no attention to record profits as a driver of ‘inflation,'” read one comment.
Another simply stated, “More to come…”
Goldman Sachs Predicts 2022 Inflation to be Worse than Expected
Just two months into the new year and already, Goldman Sachs has reported that this year’s inflation rates will likely only worsen. In a report, the investment banking company wrote, “The inflation picture has worsened this winter as we expected. And how much it will improve later this year is now in question.”
As to the cause for worsening inflation, the Wall Street bank highlights actual inflation predictions and a strong job market.
“The initial inflation surge might have lasted long enough and reached a high enough peak to raise inflation expectations in a way that feeds back to wage and price setting,” the company reported.
It’s ironic that, amid massive inflation spikes, the U.S. would see its best job market in postwar history. After such economic turmoil, it should mark a positive trend. However, despite all-encompassing employment opportunities, most Americans will experience a dramatic increase in the cost of living.
More than Half of Americans Now Live Paycheck to Paycheck
As a result of the record inflation spike, 64% of Americans currently live paycheck to paycheck.
The current cost of living, which encompasses gas prices pushing beyond $4.00 per gallon, increased rent and mortgage costs, and ridiculous grocery bills, has even changed what qualifies as “low-income” in some states.
Mark Hamrick, a Bankrate.com senior economic analyst, reports that while “Wages are up 5.1% over the past year,” it still can’t combat a near 8% rate of inflation. As a result, American families have been stretched thin, with fuel and groceries becoming more difficult to attain considering rising costs.
In fact, Lending Club’s financial health officer Anuj Nayar reports, “Depending on where you live, $100,000 may not get you that far.” It’s drastically altered what defines a family as “low-income.”