U.S. households now own roughly 52% of the stock market and they are now struggling to make ends meet in this inflationary environment… What could go wrong?

Online Grocery Prices Surge 13.4%, Biggest Ever

Online U.S. grocery prices surged year-over-year by 13.4 percent in July, beating the previous records of 12.4 percent in June, 11.7 percent in May, and 10.3 percent in April, according to the Adobe Digital Price Index released on Aug. 9.

Before the pandemic, online shopping was long immune to inflation, but since June 2020, online prices have persistently increased over a 25-month stretch, causing the U.S. economy to struggle in its recovery.

However, in July, total online prices declined 1 percent year-over-year and 2 percent from June, led by electronics, apparel and toys, after more than two years of inflation.

American consumers spent $73.7 billion online in July, down from $74.1 billion in June.

On a year-over-year basis, e-commerce expenditures in July grew 20.9 percent, led by the annual Amazon Prime Day, which drove record online sales for the retail industry overall.

With inflation running at a 40-year high, 36% of U.S. adults tapped their savings to cover living expenses: Survey

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  • By age group, Gen Xers have taken the most from savings for everyday expenses: an average of $644.

  • During the first half of the year, the U.S. personal savings rate fell to 5.1% in June from 8.7% in December 2021, according to government data.

  • This may a good time to scrutinize your spending if you haven’t already done so, one expert says.

     

Americans Using Credit Card Rewards to Offset Inflation

Inflation concerns haven’t been enough to deter Americans from spending, a new study found, they are just using credit card rewards to cushion some of the blow.

Nearly half of credit cardholders are leaning on their rewards to offset rising costs of everyday purchases, according to a recent Wells Fargo study, with two-thirds of millennials reporting so. Nine in 10 of the more than 2,000 U.S. adults surveyed said they were concerned about inflation, and almost two-thirds of rewards cardholders cared about their rewards now more than ever.

The results underscore how hard Americans have been hit by rising prices, currently running near 40-year highs, though softening a bit in July, with credit cardholders using their rewards for basic expenses to ease their cash flow, the report said.

“It’s not surprising to me that across all segments of our portfolio [millennials] rely on their credit card rewards to offset some costs of everyday purchases,” Krista Phillips, executive vice president and head of branded cards and marketing for Wells Fargo, told Yahoo Money. “They make up a big cohort of customers… and we know these little redemption items really alleviate some of that extra expense when it comes to inflation.”

 

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