Grocery costs up around $200/mo over 2019, fuel costs up around the same, health insurance up around $150, utilities up around $150, Car insurance doubled, homeowners insurance up $4,000 per year. Over the last three years, my basic monthly costs have increase around $1,500 per month. That used to be my cushion; my savings for home maintenance, clothing, lunches with friends, and travel. No more.
Spot on post. The costs of all the necessities of daily living (food, shelter, utilities, transportation, insurance, taxes, medical, etc.) have been driven up by inflation. Then add to that the high cost of debt service (e.g., interest rates on credit cards). The consumer is tapped out. Even the customers of dollar stores are pulling back.
Many pundits are expecting a Fed interest rate cut(s) to turn things around but consumers are so strapped and loaded up with debt that they are not in a position to take out more debt, even at lower rates.
Consumer weakness is here to stay for a while.