American workers’ buying power is steadily and painfully diminished by excessive inflation. A recent Qualtrics International study supported this. 

Those In the Workforce Are Leaving for Areas with A Lower Cost of Living

The report shows that 38% of employees have sought a supplementary job. Another 14% of workers are looking for a new job. 

This is supported by a study of 1,000 full-time American workers. Meanwhile, 18% of employees have moved. To save costs, the workers are moving to a region with a cheaper cost of living. In addition, 13% more people also intend to move, according to their plans.

Last week, a study was released by the Labor Department. According to the data, the average hourly wage for all workers fell by 3% in September. 

After accounting for rising consumer prices, the decrease is from the same month last year. Average hourly salaries dipped 0.1% last month after inflation rose.

By that standard, the average American worker is now in a worse situation than they were a year ago. This is true despite the fastest nominal salary growth in years.

This is because customers are dealing with really wild inflation. As a result, their buying power soon decreased due to inflation.

According to government data released last Thursday, the consumer price index increased by 0.4% in September. Prices rose by a month’s worth of money and 8.2% annually, respectively. 

The consumer price index broadly measures the cost of daily necessities, including food, petrol, and rent. Both numbers exceeded the 8.1% overall result and the 0.2% monthly gain predicted by Refinitiv economists. 

This was a concerning indicator for the Federal Reserve, which aimed to slow price increases and control consumer demand. A vigorous drive to raise interest rates was part of the strategy.

Core prices increased 0.6% from August to September, excluding food and energy. This trend is even more troubling since it suggests the economy is experiencing significant inflationary pressures.

Since 1982, the most significant yearly rise in core prices has been the 6.6% increase from last year.

Inflation’s Harsh and Unpleasant Impacts

Most American families are under tremendous financial strain as a result of inflation. As a result, these families are compelled to pay extra for basic expenses like rent and food.

Americans with modest incomes bear a disproportionate amount of the cost. These low-income Americans are those whose already limited earnings are severely influenced by price changes.

Although last month, homeowners continued to see some relief. Gas prices decreased 4.9% from the previous month in September and provided some comfort. 

Other price increases, however, seemed to be tenacious and persistently high.

The cost of food increased by 0.7%, bringing the year-over-year growth to 13%. As a result, consumers paid extra for products like cereal, poultry, milk, and fresh vegetables.

Shelter prices surged and now make up about 40% of core inflation. The growth rate during the last year was 6.6%, the quickest since February 1991.

The monthly increase in rent charges was 0.8%, while the yearly accumulation was 6.7%. Rent increases are becoming a worrying trend. 

This is because rising housing prices directly and significantly impact household finances. For example, a data point was released in September that calculates what renters would have paid if they hadn’t owned their homes. The cost increased by 0.8%.