Current:Home > InvestDespite slowing inflation, many Americans still struggling with high prices, surging bills -Wealth Nexus Pro
Despite slowing inflation, many Americans still struggling with high prices, surging bills
View
Date:2025-04-12 11:25:46
Los Angeles — For Robin Line, the cool air in her South Los Angeles apartment building's community room in is a welcome relief.
But her July electric bill still jumped 46%. Living on a fixed income, she can barely cover the basics.
"I have to choose, milk one week, eggs the next week, it's very difficult," Line told CBS News.
Running the air conditioning in the record heat is expected to drive energy costs up nearly 12% this summer, according to the National Energy Assistance Directors Association, a budget-buster for some families.
"There's a lot of work that shows that poorer households do suffer a higher inflation rate," said Rodney Ramcharan, a finance professor at the USC Marshall School of Business. "These people are feeling it somewhere around 5% to 6%."
That's because most of a low-income family's budget goes to necessities, which are still rising. Rent has risen 8% over the last year, according to the U.S. Bureau of Labor Statistics. Over the same period, groceries have risen 3.6%, and electricity has risen 3%.
There's also new evidence people are using credit cards to cover bills. For the first time in the U.S., credit card debt has surpassed $1 trillion, according to a report this week from the Federal Reserve Bank of New York's Center for Microeconomic Data.
"When we polled consumers that carry credit card balances about what was behind that, what caused it, emergency and unplanned expenses was the top answer, but even everyday expenses were about one in four," said Greg McBride Chief Financial Analyst, Bankrate.com. "It's a sign of financial strain."
Paying bills with a credit card is not even an option for Line, who said she is "absolutely" already delinquent on at least one bill.
Inflation rose by an annual rate of 3.2% in July, according to numbers released Thursday by the Labor Department. While it marked the first increase in inflation after 12 straight months of disinflation, it was still significantly down from July of 2022, when annual inflation hit a staggering 8.5%.
- In:
- Consumer Price Index
- Inflation
veryGood! (66597)
Related
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- At least 21 dead in Kazakhstan coal mine fire
- Israeli military says warplanes are bombing Hamas tunnels in Gaza, signaling new stage in offensive
- NYC protesters demand Israeli cease-fire, at least 200 detained after filling Grand Central station
- $73.5M beach replenishment project starts in January at Jersey Shore
- From 'No Hard Feelings' to 'Old Dads,' here are 15 movies you need to stream right now
- California dumping millions of sterile Medflies to help clear invasive species
- Russia hikes interest rate for 4th time this year as inflation persists
- Former Danish minister for Greenland discusses Trump's push to acquire island
- Proof That Celebrities Enjoy Dressing Up as Other Stars as Much as We Do
Ranking
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
- NYC protesters demand Israeli cease-fire, at least 200 detained after filling Grand Central station
- 2 Korn Ferry Tour golfers become latest professional athletes to be suspended for sports betting
- Damian Lillard sets team record with 39 points in debut as Bucks defeat 76ers
- Questlove charts 50 years of SNL musical hits (and misses)
- 'Nomance': Shows with sex scenes growing more unpopular with Gen Z, according to new study
- Inside Tom Sandoval and Jax Taylor's Reconciliation Post-Vanderpump Rules Cheating Scandal
- Taylor Swift's 1989 (Taylor's Version) Vault Tracks Decoded: All the Hidden Easter Eggs
Recommendation
'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
Chicago slaying suspect charged with attempted murder in shooting of state trooper in Springfield
Police find note, divers to search river; live updates of search for Maine suspect
Judge denies Bryan Kohberger's motion to dismiss indictment on grounds of error in grand jury instructions
Romantasy reigns on spicy BookTok: Recommendations from the internet’s favorite genre
RHOBH's Dorit Kemsley Reveals She Was Victim of 2nd Robbery After Home Invasion
Inside Tom Sandoval and Jax Taylor's Reconciliation Post-Vanderpump Rules Cheating Scandal
Pope’s big meeting on women and the future of the church wraps up — with some final jabs