It’s an understatement to say that functioning has become more expensive in recent years. Consumers have been spending significantly more money than usual on food, electricity bills, and gas for months. And it’s possible that things will grow worse before they get better.
On a year-over-year basis, the Consumer Price Index, which tracks changes in the cost of consumer goods, gained 8.5 percent in March. This is the biggest increase since 1981.
Inflationary pressures are making it more difficult for Americans to pay their obligations. This is especially true for individuals who were financially impacted by the pandemic and have yet to recover.
Will surging inflation, on the other hand, establish a case for a fourth stimulus check? Here’s everything you need to know about it.
The United States cannot rely on windfalls
Lawmakers have proposed a gas-specific stimulus that would apply when gasoline prices are out of control, as they are right now. Despite the fact that inflation is at an all-time high, there has been no hint of a fourth stimulus check entering Americans’ bank accounts.
While inflation is on the rise, the US economy is far from in dire straits in terms of employment. Only 185,000 people applied for jobless benefits last week. That’s a significant improvement from the early phases of the pandemic when fresh weekly claims were in the millions.
Furthermore, while new unemployment claims increased marginally last week compared to the week before, they were recently at their lowest level since 1968. And a fourth stimulus check is exceedingly improbable based on that alone.
That isn’t to say the Biden administration won’t strive to alleviate the gas shortage. But it’s just one example of a rising cost that Americans are currently dealing with. And there’s a fear that if relief isn’t provided, many more Americans will find themselves in debt.
In reality, consumer debt in the United States increased by about $42 billion in February. And some of that rise could be due to the fact that more people are being compelled to charge expenses on credit cards because they don’t have enough cash to cover their daily obligations.
Adapting to rising living costs
Despite the fact that so many consumers require assistance in combating inflation, the possibilities of a fourth stimulus check being issued in the near future are modest. Those that are struggling to make ends meet, on the other hand, should look into what options are accessible to them.
For example, several states still have rent relief funds available, which can be used to cover not only past-due housing payments but also a few months’ worths of future payments in some situations.
Customers who are having difficulty paying their utility bills can contact their suppliers to see what options they have or check to see whether their state rental assistance programs include utility costs as well.
Finally, many people are experiencing difficult financial times. While a stimulus check could assist many people to cope with rising living costs, it’s unlikely that such a solution will be implemented.
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