After the Americans experienced a historical inflation that reached 9.1% in the month of Junesome consumers have begun to feel a little relief.
According to a report from LendingClub, fewer and fewer adults say they live paycheck to paycheck. Last July, 59% of Americans said they lived paycheck to paycheck, down from 61% in June.
Nevertheless, this figure is still higher than a year agowhen the number of adults who felt too pressured was 54%.
About three-quarters of consumers who earn less than $50,000 a year and 63% of those earning between $50,000 and $100,000 lived paycheck to paycheck in July, according to numbers from LendingClub.
Of those earning $200,000 or more, about 30% reported living paycheck to paycheck, down from 36% the previous month.
Recent signs that inflation has peaked and it could be cooling is good news for cash-strapped Americans.
This news is especially good for low-income workersas they have been the most affected by price increases this year, particularly in food and other basic products, since those expenses represent a greater part of the budget, studies show.
Still, more than half of all US consumers. still struggling to pay for his everyday lifestyleforcing some to rely more on credit cards or dip into savings, leaving them financially vulnerable.
The Consumer Price Index report for July finally showed that the prices families pay for a variety of goods and services began to decline after the average cost of gasoline fell below $4 dollars for the first time since March and are now down to $3.85.
Meanwhile, the Federal Reserve is raising interest rates to further curb inflation, which is still near its highest level since the early 1980s. The US central bank has indicated that further increases will come until there are clear signs of a pullback.
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Source: La Opinion