Older Americans are more concerned about inflation and cut back on spending: report
Older generations are expressing higher levels of worry about rising prices and inflation, according to a new report from Morning Consult.
In June, about 78% of baby boomers and 67% of Gen Xers said they felt “very concerned” about inflation, according to Morning Consult’s US Supply Chains and Inflation Report. That’s compared to 55% of Millennials and less than half of Gen Z adults.
Inflation reached a new high of 40 years in May with no signs of slowing down, with the consumer price index (CPI) hitting an annual rate of 8.6%, according to the latest report from the Bureau of Labor Statistics (BLS). Who came after inflation slightly softened in April, falling to 8.3% per year. On a monthly basis, inflation increased by 1% from April to May.
“Spending growth faced headwinds in June as consumers faced with higher-than-expected prices were increasingly inclined to cut back or forgo purchases,” the report said. “While demand for durable goods and housing had already begun to weaken in May, consumers in June also increasingly resisted service price increases, potentially delaying a return to pre-pandemic spending patterns. .”
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ANOTHER INTEREST RATE HIKE LIKELY THIS MONTH, FED MINUTES SHOW
Americans cut spending as inflation soars
As prices rise, Americans are now forgoing purchases and turning to cheaper substitutes, report says
Travel is one of the main areas affected by rising prices. During the summer driving season, when vacations are more frequent, the new study predicts that rising gas prices could encourage more Americans to stay home.
In June, 45% of adults said they had driven less in the previous month, compared to 38% of consumers who said the same in May. About 90% of those who said they were driving less cited rising gas prices as the reason.
“For 13 of the 17 product and service categories tracked by the index, the share of non-buyers due to ‘sticker shock’ exceeded those ready to absorb price increases in June – an indication of the magnitude of price sensitivity for consumers,” the Morning Consult report said.
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JUNE JOB GROWTH REVEALED AMID RECESSION FEARS
How to reduce monthly expenses
As inflation rises, Americans can take several steps to reduce their monthly expenses and better cope with higher prices. Here are a few:
Refinance your mortgage
House prices have almost gone up 20% annually and rising mortgage rates also raised concerns.
“While durable goods remained the most affected, services – which tend to be individually distinct and relatively more difficult to trade – saw the largest increase in price sensitivity over the past month,” the report said. from Morning Consult. “Housing payments, the single largest monthly expense for most households, were among the most affected service categories, with rising mortgage rates adding to affordability issues.”
If you’re looking at a higher monthly mortgage payment, refinancing can help lower your costs. Visit Credible to be prequalified in minutes without affecting our credit score.
THE PRICE OF THE HOUSE COOLS DOWN IN MAY, BUT REMAINS HISTORICALLY HIGH
Change car insurance
The price of gasoline remains high, and even the cost of buying a new car is historically high. However, drivers can take other steps to help lower their automobile costs. For example, finding a new car insurance provider can help lower your car insurance premium payments.
Contact Credible to speak with an auto insurance expert and get all your questions answered.
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