The average American is shelling out an extra $717 a month because of the hottest inflation in decades, according to a new analysis. The financial squeeze stems from the rising cost of a number of everyday goods, including cars, rent, food and health care. The Joint Economic Committee Republicans released the analysis.

Consumer price index still climbed 8.5% from the previous year. JEC Republicans calculated the figure by comparing prices for goods and services in July versus how much households would have paid for those same items in January 2021. Prices increased 13.3% from January 2021 to July 2022, costing the average American household $717 in July 2022 alone.

Real average hourly earnings actually decreased 0.5% in July from the previous month. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations. American workers have seen strong wage gains in recent months, but inflation has eroded those entirely.

On an annual basis, real earnings actually dropped 3% in July. The cost of energy fell 4.6% from the previous month, though it remains 32.9% higher than just one year ago. gasoline prices fell 7.7% from last month, but remain up 44.9%.

The cost of groceries surged 1.3%, putting the 12-month increase at 13.1%. President Biden lauded the cooler-than-expected report as evidence that inflation "may be beginning to moderate" Experts have cautioned that inflation remains abnormally high and could take months, or even years, to return to pre-pandemic levels.
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