Global Economy

Americans need extra $11400 a year to afford the same quality of life – Daily Mail


  • Colorado residents must fork out an extra $14,995 to afford the same quality of life as two years ago
  • Arkansas has the lowest extra expenditures needed – but households will still need an extra $8,528 a year
  • The data compares the prices of everyday essentials including food, housing, energy and transportation in October this year and January 2021 

The typical American household has to spend an extra $11,434 a year to maintain the same quality of life they had in 2021, new data has revealed. 

According to analysis from Republican members of the US Senate Joint Economic Committee, Colorado residents are being forced to fork out an extra $14,995 a year in order to afford the same quality of life as two years ago – the highest of any state. 

The figures compare the prices of everyday essentials including food, housing, energy and transportation in October this year and January 2021 – before inflation began to soar. 

In June 2022, the annual rate of inflation hit a 40-year high of 9.1 percent – sending consumer costs skyrocketing. It has since cooled – falling to a 3.2 percent annual rate in latest figures from October, but is still above the Federal Reserve‘s 2 percent target. 

According to government data, there has been a 17 percent increase in inflation since January 2021, compared to a 13.6 percent rise in average hourly pay for workers. 

According to analysis from Republican members of the US Senate Joint Economic Committee, Colorado residents are being forced to fork out an extra $14,995 a year in order to afford the same quality of life as two years ago – the highest of any state

Despite inflation rates falling, the figures underscore the financial pressures many American households continue to face. 

Americans living in Utah have the second highest additional expenditures to afford the same standard of living as 2021.  According to the data, residents there need an extra $14,551 a year. 

Arizona has the third highest – with $13,329 extra annual spending required to maintain the same quality of life. 

But Arkansas has the lowest extra expenditures needed to afford the same living standards. Households will still need an extra $8,528 a year, the analysis found. 

This is followed closely by Maine and Oklahoma, where locals need to spend $8,650 and $8,869, respectively, to maintain their standard of living. 

The annual rate of inflation fell to a 3.2 percent annual rate in latest figures from October, but is still above the Federal Reserve 's 2 percent target

The annual rate of inflation fell to a 3.2 percent annual rate in latest figures from October, but is still above the Federal Reserve ‘s 2 percent target

The state-by-state variation is due to differences in price of basic living essentials.

For example, in Colorado, the research found residents have to typically spend $267 more on housing and $366 more on transportation compared to January 2021. 

In Arkansas, locals have to spend $123 more on shelter costs and $240 more on transportation, on average, in October 2023 compared to the start of 2021. 

Although inflation is cooling, many Americans are not feeling relief as the majority of prices are not declining but are just rising at a slower pace. 

Between October 2022 and October 2023, car insurance, white bread and shelter were up 19.2, 7.1 and 6.7 percent respectively

Between October 2022 and October 2023, car insurance, white bread and shelter were up 19.2, 7.1 and 6.7 percent respectively

According to the latest inflation figures from October released earlier this month, the cost of many essentials is still going up

For example, the cost of food at home has risen by 2.1 percent over the last year. 

Cereals and bakery goods were up 4.2 percent year-on-year, and car insurance, white bread and shelter were up 19.2, 7.1 and 6.7 percent respectively.

Gasoline, on the other hand, fell 5.3 percent year-on-year to October – and has also been dropping for the last 10 weeks



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button