Despite the fact that American consumers are still dealing with inflation, the average cost of gasoline set a new record high on Monday as a result of Russia's invasion of Ukraine. The cost of these developments to American families in 2022 has been calculated by a worldwide investment consultant.
According to a Monday research note from Yardeni Research, rising oil prices predict that the average American household would pay about $2,000 more for gasoline in 2022.
"We also estimate that the average family is presently paying at least $1,000 [according to a seasonally adjusted yearly rate] more on food as a result of fast-rising grocery costs," the firm's president, Edward Yardeni, said on LinkedIn. "That means people will have $3,000 more to spend on other consumer products and services, which are also seeing substantial price hikes."
According to GasBuddy, the average price of a gallon of gasoline touched $4.104 on Monday, breaking the previous high of $4.103 set in 2008.
Consumer prices in the United States increased by 7.5 percent in January, the greatest level since 1982, while producer prices increased by 9.7 percent, the highest level ever.
On average, American families are spending $385 more each month for almost everything, but some families are paying far more.
"They believe that during the next three years, inflation will stay higher than originally predicted, owing mostly to the job market. Rising wages are cited by more than two-thirds of survey respondents as a danger factor "According to David Altig, president of the National Association of Business Economics and executive vice president and director of research at the Federal Reserve Bank of Atlanta.
President Biden stated in his State of the Union speech that his Build Back Better plan would lower inflation; however, even if analysts hadn't forecast that Build Back Better would actually raise prices, the initiative failed in the Senate last year.