Inflation Already Felt in American Households as Prices Keep Going Up, Fed Survey Reveals

By Thea Felicity

May 21, 2024 03:18 PM EDT

People wait in line at the food pantry run by La Colaborativa in Chelsea, Massachusetts on May 20, 2022. - The US government will fly in baby formula on commercial planes contracted by the military in an airlift aimed at easing the major shortage plaguing the country, the White House said on May 18, 2022.
(Photo : JOSEPH PREZIOSO/AFP via Getty Images)

A recent Federal Reserve survey revealed that inflation continues to challenge US households, with parents feeling the impact more intensely, as reported by the NY Post.

The survey also showed that 72% of adults rated their financial status as at least okay as of October 2023. 

However, this figure marked a decline from 78% in 2021, hitting the lowest level since 2016, despite showing minimal change from 73% in 2022. Notably, the proportion of parents reporting financial stability dropped by five percentage points to 64%, the lowest level since data collection began in 2015.

Rental housing costs emerged as a significant challenge, with 19% of renters indicating they had fallen behind on rent at some point in the prior year, up from 17% in 2022. The median monthly rent surged 10% to $1,100, outpacing overall inflation rates.

READ NEXT: Donald Trump Attacks Joe Biden's Handling of Inflation After President Cited Snickers Bars as Example of 'Shrinkflation'

Decrease in Inflation

Despite a decrease in consumer inflation from approximately 9% in June 2022 to below 4% at the time of the survey, 65% of adults indicated that high prices had worsened their financial situations. 

While 34% noted an increase in their family's monthly income over the past year, 38% reported a corresponding rise in spending.

Federal Reserve also found that 63% of adults could cover a hypothetical $400 emergency expense using cash or its equivalent, unchanged from 2022 but down from a peak of 68% in 2021.

As part of the government's efforts, VCPost reported that Social Security Income will jump to $60 monthly to help low-income families.

READ MORE: Social Security Income Payments to Jump by $60 Monthly in 2025 Amid Persistent Inflation

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