The economy today
United States, savings at all levels
Audio 03:22
Inflation rose again in May in the United States and reached 8.6% over one year, a new record in 40 years: energy rose by 34%, food prices rose by 10% in the country.
© AFP / SAUL LOEB
By: David Thomson Follow
3 mins
It is a global phenomenon which spares no country and which hits the poorest hardest: inflation undermines everyone's purchasing power.
The world's leading economic power, the United States is no exception.
In June, inflation rose to 9.1% over one year, unseen since 1981. Housing, gasoline, food… the increase mainly hits the daily expenditure of American households.
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from our correspondent in Miami,
For the past few months, Karen has been paying more and more attention to what she cooks in her frying pan.
No choice, says this nanny from Miami.
With inflation over 9% at the supermarket, we have to adapt...
“
You have to behave like an informed consumer, find where you can save money, some days there are promotions for seniors, otherwise you use discount coupons and you have to track down promotions.
»
And some delicacies, like his favorite ice cream, have disappeared from his fridge... too expensive.
daily sacrifices
In the United States, prices are rising every day, from burgers to movie tickets, says Karen.
So this nanny scrutinizes her every expense, starting with her fuel.
“
There are applications that tell us every day which is the cheapest gas station.
Sometimes it's a trot but it saves 10 or 15 cents per gallon of gas and at this point you count every penny.
And then, we adopt economical driving
: we drive more slowly, we think twice before each trip and we try to plan the shortest route for each race to consume as little fuel as possible because the price of fuel has doubled
!
»
But that's not all: with the rise in prices, Karen, widowed for two years, must also sacrifice her outings and even her beauty expenses.
“
It's difficult but many of us have to save money on restaurant outings.
Besides, we see it in the evening in front of popular restaurants, the queues have disappeared.
People go out less, go to the cinema less.
And then we go less to the hairdresser, to the manicure, to the pedicure… We must constantly ask ourselves if we can continue our usual routine or if we should spend our money more wisely.
»
Inflation weighs on Joe Biden's popularity
And if prices continue to soar, Karen even fears having to dig into her modest pension fund, which she was not supposed to touch until her retirement in four years.
This is already what some of his friends are doing.
“
It's sad, but many Americans live in poverty and have trouble making ends meet.
So the slightest price change affects them immediately in their daily lives.
»
And yet, Karen does not hold Joe Biden responsible for the price hike.
Look at the economic situation he inherited when he came to power in the midst of a pandemic, she says.
American opinion, on the other hand, is less understanding.
This historic inflation weighs on the president's popularity, a major concern for Democrats four months before the midterm elections.
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Economy
United States
consumption