Black Friday? Americans purchase less amid record inflation levels
2 Min Read
Spending power in the US, unfortunately for the working class, has decreased.
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Black Friday in the US. (NurPhoto)
After years of COVID-19 measures, in-person Black Friday has shown that Americans are spending a lot less than expected amid record levels of sharp inflation in the country.
Read next: IMF: Ukraine conflict will affect global economy, trade, supply chains
Crowded stores though "appeared to be an exception" in the country, according to an American news outlet on Friday, as a declining purchasing power intercepted what customers were usually used to and hoping for.
"I am shopping less," said one woman, speaking to a news outlet. "The money is not going as far as last year," said another woman.
Preliminary data shows that e-commerce on Thanksgiving rose only 2.9%, which comes to nowhere near the 8% inflation rate, the highest in 40 years.
In contrast, findings by the Federal Reserve of New York show that credit card balances jumped 15% in the third quarter of 2022, which is the biggest year-on-year increase in over two decades.
Inflation causing great economic insecurity in US
In September, the Secretary of the US Treasury Janet Yellen remarked that inflation at home is causing a great sense of economic insecurity, and expressed hope it does not become endemic - despite that, experts have been warning that inflation may become rooted in the US economy.
"I think inflation has been running at unacceptably high rates, it is a huge issue for every American household, it's leading to a great sense of economic insecurity for Americans, and we don't want to see it become endemic," Yellen said in an event hosted by The Atlantic.
Yellen said that she predicts inflation will come down next year, in addition to the country being vulnerable to supply chain shock, which has come as a result of the war in Ukraine.
