Friday 1 July 2022 03:42 AM Americans cutting back due to 'immense financial pressure' with 50% spending up ... trends now
Americans are making significant changes to their lifestyles, a new survey has found, as they struggle to keep their heads above water amid sharply rising living costs.
The Labor Department on June 10 said that the consumer-price index increased 8.6 percent in May from the same month a year ago - marking its fastest pace since December 1981.
The U.S. central bank this month raised its policy rate by three-quarters of a percentage point, its biggest hike since 1994. The Fed has increased its benchmark overnight interest rate by 150 basis points since March.
On Tuesday, a New Jersey-based financial institution, Provident Bank, published the results of a survey of 600 adults.
They found that more than 70 percent of respondents said they were changing their travel habits - a reflection of the 48.7 percent increase in the cost of gasoline, year on year, and a 37.8 percent rise in the price of air fares.
The bank said the decisions were being made due to 'immense financial pressure'.
Passengers are seen on Wednesday at Atlanta's airport. The cost of flights has increased almost 40 percent in a year
Motorists are facing misery at the pumps. A woman in Petaluma, California, is seen on May 17 filling up her car, at $6.29 a gallon
Almost a third of drivers - 32 percent - now spending an extra $101 - $250 per month on gasoline, with 13.5 percent reporting a monthly increase in fuel costs between $251 - $500.
Some said they were trading in their cars, switching from gas to electric vehicles. Others said they were cycling, rather than using their cars.
And others said they were postponing their vacations, and visiting family less often.
The report found that 10 percent of those surveyed said they had eliminated entirely non-essential purchases.
Americans said they were cutting back on trips to the salon, cigarettes and takeout coffee.
More than half of all those surveyed, or 53.33 percent, said they now spend between $101 and $500 more per month on groceries.
