That figure underscores the cumulative impact high inflation has had on consumer finances — even as price growth has cooled considerably in recent months. “High inflation of the past 2+ years has done lots of economic damage,” Mark Zandi, chief economist at Moody’s Analytics, wrote in a post on X, the platform formerly known as Twitter. Most of that increase in spending is driven by housing costs, which have surged, Zandi told CNN in an email on Friday.
The good news is that wages are finally starting to outpace inflation and consumer price growth has eased significantly, so much so that many investors are betting the Federal Reserve is done raising interest rates. Looking at just the last year, Zandi calculates that the typical household spent $202 more this July than they did a year ago to buy the same goods and services.
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