It’s too expensive! What happened to American prices?
Recently, on foreign social media, many Americans have complained about the rising cost of living.
An American posted a meal bill on foreign social media, complaining about the current high prices in the United States, such as a sandwich, which costs more than 100 yuan; At the same time, many American bloggers on foreign social media constantly spit out the current living environment, causing hundreds of thousands of comments to resonate.
How much pressure does the American people have on their lives?
The sojourner in the United States said this.
Guo Guojun interviewed several overseas Chinese studying and living in the United States. They said that although the price in the United States has been at a high level in recent years, the situation of "sky-high" sandwiches is not common. Recently, the overall price has risen partially, but most of them are still within the acceptable range.
Mr. Kong, who has lived in Washington for ten years, told Guo Guojun that in and around Washington, DC, the prices of daily necessities and food in large and medium-sized supermarket chains frequented by local Americans, such as Walmart, Target and Whole Foods, increased slightly, and some even lowered the prices of commonly used foods to stimulate consumption. In contrast, the Asian food monopoly supermarkets frequented by Asians and Chinese, such as 99 Dahua and Greater China, have seen a marked increase in food and fresh food prices. This has led to a sharp increase in the prices of Chinese restaurants and take-away vegetables, ranging from 10% to 30%.
Goods sold in American supermarkets. Photo courtesy of Mr. Kong
Wang Jiarui, who has been studying at the University of Wisconsin-Madison for three years, told Guojun that in Wisconsin, prices are like "boiled frogs in warm water" and "our sensitivity to prices is decreasing due to high prices for many years".
In an interview with Guo Guojun, Ms. Yang, who works for Costco Retail in the United States, bluntly said that in Los Angeles and California, prices have obviously increased recently, especially for a box of eggs, which has increased by about $2. At the same time, she said that there is also a certain gap in the prices of different States in the United States. It may be that there is a certain imbalance between the supply and demand of local related foods, which led to the emergence of "high-priced sandwiches".
Eggs sold in American supermarkets. Photo courtesy of Miss Yang
At the same time, pay cuts, layoffs and rising housing insurance have become increasingly serious, which has also affected the lives of the American people.
According to the report of the Federal Reserve, in the past year, the cost of renting a house in the United States was higher than that in the previous year: 19% of tenants said that they had defaulted on their rent in the previous year, up from 17% in 2022. According to the survey, the current rent cost in the United States is much higher than the overall inflation rate, and the median monthly rent has risen by 10% to $1,100.
Mr. Kong said that in the past 1-2 years, inflation has led to a significant increase in house prices and rents. House prices in some school districts and convenient transportation areas have risen by more than 15%. In addition, daily living expenses such as water, electricity, coal and gasoline prices have also increased slightly, especially the average increase of residents’ electricity bills has exceeded 8%.
On foreign social media, many low-and middle-income Americans express their dissatisfaction with the current living environment. One user wrote: "I’m exhausted, but we shouldn’t go bankrupt because of basic expenses." Another user said: "The rent has increased by 500 dollars since the beginning of this year. In order to continue living in the house, I have to work two jobs at the same time."
Inflation in the United States has slowed down but remains stubborn
Recently, inflation in the United States has dropped slightly, and it has slowed down for two consecutive months in May.
According to data released by the Bureau of Labor Statistics, the consumer price index (CPI) in the United States in May increased by 3.3% year-on-year, slightly lower than the previous value and expected value of 3.4%; In May, the CPI increased by 0% month-on-month, which was also significantly slower than the previous value, the lowest level since July 2022.
Although the price pressure in the United States has weakened, different Americans have different views on price perception, mainly because of their different lifestyles, income levels and consumption habits. Some people in the United States still continue to feel the tremendous pressure brought by stubborn inflation.
For example, most Americans say that their financial situation has hardly changed in the past year, and some Americans say that life has become more difficult. According to a poll, nearly half of the people in the United States believe that the recent inflation has made their lives even more difficult. The US media believes that the inflation rate may continue to be higher than the wage increase in the next few years.
The American media reported recently that there is more and more evidence that American consumers are reducing their consumption when facing severe economic obstacles. Low-income Americans are already struggling, and the pain has now spread to middle-income consumers.
This pressure may last for a long time. The American media reported that an analysis of Moneywise financial website based on the data of the US Bureau of Labor Statistics, the Federal Housing Administration and the online real estate service website Redfin pointed out that in the next few years, the inflation rate will continue to exceed the increase of wages in most industries. In the past five years, 97% of the professional wages have failed to keep up with inflation, and waiters are the only industry that has achieved real wage growth.
Inflationary pressure is a long-term problem
On June 12, local time, the Federal Reserve’s meeting on interest rates released the latest statement. The US economic activity continued to expand steadily, employment growth remained strong, and the inflation rate eased in the past year, but it was still at a high level.
Zhang Monan, a researcher at China International Economic Exchange Center.He said that strong domestic demand in the United States has led to an increase in inflation expectations. Despite the recent decline in inflation growth for two consecutive months, the price increases in food, housing, transportation, medical care and other fields are structural and may exist for a long time, which has squeezed the spending power of American consumers.
Zhang Monan said that from the current point of view, the Fed remains in a relatively neutral position. Therefore, on the one hand, promoting interest rate cuts will take inflation into account, on the other hand, it will help the Biden administration to continue to expand its fiscal revenue and expenditure, thus reducing the financing cost of long-term US government bonds.
According to the May retail sales data recently released by the US Department of Commerce, the US retail sales in May increased by 0.1% month-on-month, which was lower than the market expectation of 0.3%, and the previous value was revised down from 0% to -0.2%.
Professor Li Haidong, Institute of International Relations, Foreign Affairs University.China News Service is a through train, which means that inflation in the United States is a long-term phenomenon and cannot be solved in the short term. This kind of inflation is closely related to the existing economic structural problems in the United States. At present, prices in the United States continue to rise, mainly because of the high tariffs in the US foreign trade and economic policy, which leads to the high tariffs being borne by American consumers themselves.
"Blindly imposing tariffs can only lead to inflation; Without tariffs, people will be dissatisfied with the authorities. Therefore, the existing political level in the United States cannot find a satisfactory answer. Inflation will be a long-term problem, and the loose conditions in a short time are not mature. " Li Haidong said.