New Data Shows How Americans Are Handling Inflation
As inflation rises, consumer confidence has risen, housing prices have slowed and there are now more job openings.
LEARN MOREAmericans Are Trying To Cope With Rising Inflation
People are struggling to cope with the effects of inflation. Newsy spoke with some consumers and small business owners about their experience.
Americans Are Trying To Cope With Rising Inflation
Charles Rex Arbogast / AP
September 7, 2022
For months, people have been making changes to cope with the highest inflation in 40 years.
"I think everyone is just trying to find a new normal and kind of balance between what we used to do and what we have to do now," said Zack Ferguson, a resident.
The Federal Reserve is expected to raise interest rates another three quarters of a percentage point this month as it tries to rein in inflation.
That will make debt, like credit card balances, even more expensive to pay off.
"Buy now pay later, doesn't mean you're paying back that $250 purchase, that means you're paying back a $375 purchase once you add in that interest," said Marla Puckett, a certified credit counselor.
Renee Macklin’s family had to rely on credit cards when their moving costs spiraled.
"Just a lot of stress, and a lot of nightmares and a lot of feeling like you're doing something wrong all the time," she said.
Rising costs are a major challenge for small businesses.
John Ries has owned Hot Pie Pizza in West Palm Beach, Florida for 13 years.
"Everything is evidentially jumping so fast, faster than you can reprint the menu, faster than you can pass that cost along to the consumer," said Ries. "My cheese, my tomatoes, my meats, my poultry, my paper goods and all my beverages."
Experts say businesses that have barely hung on, may start giving up in the coming months.
"I think because of the pandemic, there was a lot of federal aid money out there, PPP and EIDL loans for example, that kept a lot of companies afloat, now that the federal money has dried up, I think we’re going to see an uptick in bankruptcy filings," said Adam Marshall, a corporate restructuring and bankruptcy attorney.
Inflation slowed a bit in July.
The Labor Department’s inflation report for August will be released next week.
Foot Locker closing more than 400 stores in malls
Though it's shuttering stores in malls, the company has plans for hundreds of new concept stores.
2:21
Wacky winter playing out differently across the US
The lack of snow on the East Coast has hurt business, especially for those who rely on money by offering snow removal services.
1:52
Forget eggs; inflation is now hitting the breakfast cereal aisle
As egg prices finally start to fall, the price of breakfast cereal is soaring. What can you do if your family eats a lot of cereal?
Top Stories
Antisemitic attacks jump to highest levels in decades, ADL finds
The Anti-Defamation League issued a report indicating 2022 had the highest number of antisemitic incidents in the U.S. since at least the 1970s.
'Rick and Morty' creator has domestic abuse charges dropped
“I have always known that these claims were false — and I never had any doubt that this day would come,” Justin Roiland said on Twitter.
Report: More than 100 million adults are paying off medical bills
More than 70% of people reported having bills directly with hospitals, which typically means a substantial balance.
