US inflation has had a snowballing effect on family budgets.
The typical American household spent $709 more in July than they did two years ago to buy the same goods and services, according to Moody’s Analytics.
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. He added that families are also spending more at the grocery store; on buying, maintaining and insuring vehicles and on recreational services like cable.