{"id":1494939,"date":"2022-05-27T15:15:24","date_gmt":"2022-05-27T19:15:24","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1494939"},"modified":"2022-05-27T15:15:29","modified_gmt":"2022-05-27T19:15:29","slug":"americans-draw-from-their-savings-to-fuel-summer-costs-new-inflation-report-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/americans-draw-from-their-savings-to-fuel-summer-costs-new-inflation-report-says\/","title":{"rendered":"Americans Draw From Their Savings To Fuel Summer Costs, New Inflation Report Says"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Famericans-draw-from-their-savings-to-fuel-summer-costs-new-inflation-report-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1494939&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Though recent data show inflation somewhat leveling off, there are likely higher price levels on the way \u2014 and Americans may be dipping into their savings to make ends meet.<\/p>\n<p>The core Personal Consumption Expenditures Price Index (PCEPI) rose 4.9% year-over-year in April, the <a href=\"https:\/\/www.bea.gov\/news\/2022\/personal-income-and-outlays-april-2022\">Bureau of Economic Analysis<\/a> said on Friday. Core PCEPI increased at the same 0.3% month-over-month rate in February, March, and April. Adding fuel and energy into the mix, the PCEPI rose 6.3% year-over-year and 0.2% month-over-month in April \u2014 a cooldown from the 0.9% month-to-month rate seen in March.<\/p>\n<p>\u201cI expect the year-over-year inflation numbers to vary considerably this year, but the month-over-month numbers will show continued inflation,\u201d Heritage Foundation research fellow EJ Antoni told The Daily Wire.<\/p>\n<p>Because inflation is still outpacing gains in income, Americans are <a href=\"https:\/\/www.nytimes.com\/2022\/05\/27\/business\/economy\/pce-inflation-april.html\">tapping into savings<\/a> to cover their expenses. Households saved 4.4% of their after-tax income in April \u2014 the lowest level seen since 2008.<\/p>\n<p>Antoni told The Daily Wire that \u201cthere is very little reason for consumers to think that price increases will somehow stop.\u201d<\/p>\n<p>\u201cWe have seen wholesale inflation \u2014 the prices businesses pay \u2014 outpace inflation at the consumer level for every month of Biden\u2019s presidency,\u201d he explained. \u201cThere are tremendous costs that have yet to be passed on to consumers, meaning much more inflation is already baked into the cake.\u201d<\/p>\n<p>As energy prices continue to rise, the added expenses will \u201ctrickle down to all goods and services across the economy, putting additional upward pressure on prices in the coming months,\u201d Antoni added. The national average cost of regular gas reached a record-high $4.60 per gallon as of Friday morning, according to <a href=\"https:\/\/gasprices.aaa.com\/\">AAA<\/a>.<\/p>\n<p>\u201cI started riding my motorcycle as my main mode of transportation, instead of just recreationally,\u201d Alexis Hornickel of Greensburg, Pennsylvania, <a href=\"https:\/\/www.dailywire.com\/news\/i-have-a-very-limited-budget-americans-forced-to-drive-less-as-gas-prices-soar\">told<\/a> The Daily Wire on Friday. \u201cI\u2019m a student, so I have a very limited budget. My gas expenses just weren\u2019t justifiable anymore.\u201d<\/p>\n<p>In a preliminary effort to curb inflation, the Fed <a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\">increased interest rates<\/a> by a half-point earlier this month \u2014 which marked the largest rate hike since May 2000 and followed a quarter-point increase from the near-zero levels that have prevailed since early 2020. By raising interest rates, the central bank hopes to increase the cost of borrowing money, thereby tapping the brakes on economic activity.<\/p>\n<p>But according to Antoni, the Fed\u2019s actions \u201chave not yet had an effect on prices.\u201d<\/p>\n<p>\u201cWe will not see downward pressure on prices from monetary tightening for some months still,\u201d he said.<\/p>\n<p>There are already indications that inflation is <a href=\"https:\/\/www.dailywire.com\/news\/summer-canceled-inflation-kills-vacations-summer-camp-for-kids-poll-finds\">giving consumers pause<\/a> from summer recreation. A poll from Echelon Insights, for example, found that 75% of parents are \u201cextremely\u201d or \u201cvery\u201d concerned about the \u201crising cost of everyday purchases like food or gas.\u201d When asked if their families have \u201cchanged or canceled plans for a family trip\u201d because of inflation, 51% answered in the affirmative \u2014 and 41% said they \u201cchanged or canceled activities for my children like camp or extracurricular activities.\u201d<\/p>\n<p>Meanwhile, another report from the Bureau of Economic Analysis revealed that the United States economy shrank at a 1.5% annual rate during the first quarter of 2022. The United States economy had been <a href=\"https:\/\/www.bea.gov\/news\/2022\/gross-domestic-product-fourth-quarter-and-year-2021-advance-estimate\">recovering<\/a> from COVID-19 and the lockdown-induced economic drag \u2014 growing at a robust 5.7% in 2021 after contracting 3.4% in 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Though recent data show inflation somewhat leveling off, there are likely higher price levels on the way \u2014 and Americans may be dipping into their savings to make ends meet. The core Personal Consumption Expenditures Price Index (PCEPI) rose 4.9% year-over-year in April, the Bureau of Economic Analysis said on Friday. Core PCEPI increased at &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1494982,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1494939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1494939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1494939"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1494939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1494982"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1494939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1494939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1494939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}