U.S. households will face an average of $5,200 in additional costs in 2022 from a year ago as 40-year high inflation hurts Americans’ wallets, a new estimate finds. The top quintile of households will brace for approximately $10,000 in cost pressures, while the bottom quintile will grapple with roughly $2,300 in more inflationary expenses. More households will be able to withstand the extra $433 per month because of pandemic-era pent-up savings and an increase in wages, economists said in the Bloomberg Economics survey. This could support heightened consumer spending until accumulated cash reserves have been exhausted, they explained. At the same time, analysts say, rapid depletion of savings may force more people to return to work. This would increase the labor supply and reduce wage growth. Many Americans anticipate higher inflation over the next year, according to the Federal Reserve Bank of New York’s (FRBNY) Survey of Consumer Expectations in …
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