Stellar Snippets
Recent data shows declining inflation and the lowest annual level for the personal consumption expenditures price index in over two years.
Still, a new LendingClub report reveals that 61% of adults continue to live paycheck to paycheck as of June, showing no change from a year ago.
Studies reveal that price spikes have hit lower-income workers the hardest, especially for items like food.
In June, about 75% of consumers earning less than $50,000 annually were living paycheck to paycheck.
Additionally, 65% of consumers earning between $50,000 and $100,000 were also living paycheck to paycheck.
The report found that top earners are experiencing fewer struggles, as only 45% of those earning $100,000 or more reported living paycheck to paycheck.
Bankrate’s chief financial analyst said, “Budgets are still very stretched and, for a lot of households, credit cards are filling the gap."
In a continued effort to tame inflation, the Federal Reserve has raised interest rates again.
Despite positive trends, there is still a long way to go and central bank officials want to see consistent months of solid data before altering direction.