- Colorado residents will have to spend an additional $14,995 to afford the same quality of life as two years ago
- Arkansas has the lowest additional expenditures needed, but households still need an additional $8,528 per year
- The data compares the prices of daily necessities including food, housing, energy and transport in October this year and January 2021
New data shows that the typical American household will need to spend an additional $11,434 annually to maintain the same quality of life as in 2021.
According to analysis Republican members of the U.S. Senate Joint Economic Committee are forcing Colorado residents to spend an extra $14,995 a year to afford the same quality of life as two years ago — the highest of any state.
The figures compare prices of daily necessities including food, housing, energy and transport in October this year and January 2021 – before inflation started to rise.
In June 2022, annual inflation hit a 40-year high of 9.1 percent, sending consumer costs through the roof. Since then, rates have cooled, falling to 3.2 percent annually in the latest October data, but still above the Federal Reserve’s 2 percent target.
Inflation has risen 17 percent since January 2021, compared with a 13.6 percent increase in average hourly wages for workers, according to government data.
According to an analysis by Republican members of the U.S. Senate Joint Economic Committee, Colorado residents are forced to spend an additional $14,995 a year to afford the same quality of life as two years ago — the highest of any state.
Although inflation is falling, the figures underscore the financial pressures that many American households still face.
Americans living in Utah have the second-highest additional expenses to afford the same standard of living as in 2021. According to the data, residents there will need an additional $14,551 annually.
Arizona has the third highest ranking, requiring an additional $13,329 in annual expenditures to maintain the same quality of life.
But Arkansas has the lowest additional expenditures needed to ensure the same standard of living. The analysis shows that households still need an additional $8,528 per year.
This is closely followed by Maine and Oklahoma, where locals have to spend $8,650 and $8,869 respectively to maintain their standard of living.
Annual inflation fell to an annual rate of 3.2 percent in the latest October figures, but is still above the Federal Reserve’s 2 percent target
The variation by state is due to differences in the price of basic necessities.
For example, the study shows that compared to January 2021, residents typically need to spend $267 more on housing and $366 more on transportation.
In Arkansas, local residents will have to spend an average of $123 more on shelter costs and $240 more on transportation in October 2023 compared to early 2021.
Although inflation is cooling, many Americans are not feeling relieved as the majority of prices are not falling, just rising at a slower pace.
Between October 2022 and October 2023, car insurance, white bread and shelter increased by 19.2, 7.1 and 6.7 percent respectively
According to the latest October inflation figures released earlier this month, the costs of many essentials are still rising.
For example, the cost of food at home has increased by 2.1 percent in the past year.
Grains and bakery products rose 4.2 percent year-on-year, and auto insurance, white bread and lodging rose 19.2, 7.1 and 6.7 percent, respectively.
Gasoline, on the other hand, fell 5.3 percent year-on-year to October – and has also fallen over the past ten weeks.