It’s been reported that inflation in June reached an annualized rate of 9.1 percent across the nation.
Anyone filling their car up with gas or making a trip to the grocery store doesn’t have to be told that prices have increased, and the Congress Joint Economic Committee has been publishing a “State Inflation Tracker” to inform people how inflation is affecting prices in their state as compared to the nation.
According to the Joint Economic Committee report, prices in North Carolina have increased 13.7 percent since Jan. 2021, which results in a monthly cost increase of $641 for the average resident of the state. The report breaks that down into $64 more per month for food, $91 per month for shelter, $306 per month for transportation and $175 per month for energy.
As high as that is, according to the report North Carolinians are doing better than the average American. The average monthly increase nationwide is $718 due to inflation.
The report states, “Over the 12 month period from July 2022 through June 2023, the inflation that has already occurred will cost the average American household $8,616 even if prices stop increasing altogether.” The amount for North Carolina would be a little less.
But at this point the prediction is that inflation is going to continue to rise. The current efforts are to slow that rate of increase, but even the most optimistic forecasts don’t call for inflation to suddenly come to a screeching halt this month.
The $8,616 increase costs means that if the average American doesn’t receive a wage increase of at least $8,616 in the next year, they will be financially worse off than they were, and an income increase of $8,616 would just be enough to stay even.
Low-income households are hit harder because they spend a higher percentage of their income on shelter, energy, transportation and groceries.