The personal savings rate of Americans has dipped to the lowest level in 14 years as sky-high inflation takes a big chunk of people’s budgets.
The U.S. personal saving rate, as a percentage of disposable income, fell to 4.4 percent in April, down from 5 percent in March, the lowest since 2008. The savings rate for February was 5.9 percent and for January 6 percent.
In April 2021, the savings rate was 12.6 percent. The highest savings rate was in March last year when it hit 26.6 percent, data from the Bureau of Economic Analysis shows.
According to Mitch Roschelle, founding partner of Macro Trends Advisors LLC, there will be demand destruction during periods of high inflation as prices get so high that people just stop consuming the items they cannot afford….