Almost half of Americans believe inflation will be higher in 2023, according to a survey. (one)
While inflation remains high and interest rates rise, many Americans fear the economy and their finances will not improve in 2023, according to a recent survey.
Almost half, or 43%, of Americans said they expect higher inflation six months from now, according to a YouGov America and The Economist poll conducted in early November. Only 15% stated that they expected a lower inflation rate.
Inflation, as measured by the Consumer Price Index (CPI), rose 7.7% yoy in October. That was an improvement from September’s 8.2% annual increase, but the inflation rate remains close to a 40-year high of 9.1% earlier this year.
Despite these consumer expectations, the inflation index is expected to fall to a 4% annual increase through the end of 2023, according to the latest economic forecast from the Credit Union National Association (CUNA). However, this means that Americans may still be facing higher prices than in previous years.
Currently, four in five, or 78%, of Americans believe inflation is a crisis, according to a poll by real estate data company Clever. Additionally, 62% said they expect the cost of essential goods to increase in 2023.
If you’re struggling in today’s economy, you might consider using a personal loan to pay off high-interest debt at a lower interest rate, potentially lowering your monthly payments. You can visit Credible to compare personal loan rates from multiple lenders at once without compromising your credit score.
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Further rises in interest rates expected
The US Federal Reserve has hiked interest rates six times so far this year to keep inflation down. In its latest interest rate hike, the Fed raised interest rates by 75 basis points.
That surge took the federal funds rate to a range of 3.75% to 4%, or the highest rate since before the 2008 global financial crisis. The effective federal funds rate is expected to reach 4.6% in 2023, forecast CUNA’s October 2022 economic forecast.
Any increase in the federal funds rate can affect interest rates on financial products such as credit cards, mortgages, and student loans.
If you want to take advantage of interest rates before they go up, you can consider refinancing your personal student loans at a lower rate, potentially reducing your monthly payments. Visit Credible to find your personalized interest rate without hurting your credit score.
Advocacy groups are calling for an extension of the student loan payment pause as the plan for forgiveness stalls
Household debt rose to over $16 trillion in the third quarter of 2022
As Americans battle high inflation, many have taken on more debt, recent data showed. According to the Federal Reserve Bank of New York, total household debt rose to $16.51 trillion after rising $351 billion in the third quarter of 2022.
This comes as credit card balances surged $38 billion, a 15% year-over-year increase and the largest increase in more than 20 years, according to the New York Fed’s report. Mortgage lending also rose $282 billion in the third quarter.
If you’re struggling to make your mortgage payments, you can consider refinancing to lower your interest rate. Visit Credible to compare mortgage refinance rates from multiple lenders without compromising your credit score.
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