By: Ilana Siyance

The effects of skyrocketing inflation are hurting the average New Yorker.

Americans are paying an extra $709 per month on common goods, compared to just two years ago, says the chief economist at Moody’s Analytics.  “The high inflation of the past 2+ years has done lots of economic damage,” Mark Zandi tweeted on Friday shortly after the Consumer Price Index was released.  The index, a closely-watched measure of inflation which tracks changes in the costs of everyday goods and services, rose a moderate 3.2 percent in July, compared to the previous year.

“Due to the high inflation, the typical household spent $202 more in a July than they did a year ago to buy the same goods and services. And they spent $709 more than they did 2 years ago,” added Zandi, who is also co-founder of Economy.com, Moody’s global economic analysis service.  He predicted that there is relief ahead, saying he expects that inflation is “set to moderate further” as the Federal Reserve approaches its 2% inflation goal.  “Vehicle prices will decline more, so too will electricity prices, and the growth in the cost of housing will slow further. The biggest worry is the jump in oil prices, which bears close watching,” Zandi added.  Though last month energy only rose 0.1%, gas prices hit an eight-month high late last month, per the CPI reports.

As reported by the NY Post, New Yorkers are ailing in the meantime though, and cutting everyday costs like groceries, as prices across the board have soared.  “Everything is high as hell,” Yvonne Lindesay, 67, said Monday.  She told the Post they have been forced to eat less healthy.  Others told the Post, that they have been buying in bulk during sales and stocking up to avoid everyday higher prices.

“We have to look for sales,” said magician Adam Cardone, 49, who complained there are no sales near where he lives.  “I live closer to the projects and nothing is ever on sale. Now tell me why? Why are things here on sale all the time and not there?” He griped, “We have noticed our bills have almost doubled. It’s doubled and everything has shrunk. All the products are smaller. They’re cutting it down — if it was 12 cookies, it’s now 4.”  He continued added that even movies are more expensive now.  “Even in the old days, the poor people thought the movies were cheap. It used to be the cheap thing to do,” Cardone said.

Carole Sanders, who worked in supermarkets for 29 years also said prices have skyrocketed. “I don’t eat that much meat. I stopped because I can’t afford it.” said Sanders, 75. “I’m not getting good nutrition.”  She added, “A dozen eggs is at least $5. They used to be $3.99. Meat is going up.”  “I’m not eating the proper food I should be eating because basically I can’t afford the proper food I should be eating,” Sanders told the Post.

Mr. Zandi had concluded his analysis with a positive note for the future. “The deeper I dig into last week’s inflation statistics, the more confident I am that inflation will be back to the Fed’s inflation target by this time next year. And this without more interest rate hikes, a recession, or even much of an increase in unemployment.”