Quick Read Healthcare costs rose 7.7% while Social Security COLA increased just 2.16%. This mismatch forces retirees back to work. Personal savings rate collapsed from 6.2% to 3.6% in under two years as spending outpaces income growth. Consumer sentiment at 56.4 sits near recessionary territory. Readings below 60 historically signal genuine financial distress. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more ...

Core Insights - The article discusses the ongoing inflation trends and forecasts, indicating that consumer price increases are expected to remain above pre-pandemic levels until at least 2026 [2][3][6] - Economists predict that core Personal Consumption Expenditures (PCE) inflation will stabilize but not return to the Federal Reserve's target of 2% for some time [5][6][11] Inflation Trends - Prior to 2021, core PCE inflation typically rose less than 2% annually, but surged to 5.6% in 2022, the highest in nearly four decades [3] - As of September, core PCE inflation was reported at 2.8%, indicating a slight increase over the year [5][11] Economic Predictions - The median forecast from economists suggests core PCE inflation will be 2.4% by the end of 2026, reflecting a cooling trend but still above pre-pandemic levels [6] - Deutsche Bank economists predict inflation will remain at 2.25% or more through at least 2028, despite lower tariff rates and a slowdown in housing costs [7] Varied Forecasts - Oxford Economics forecasts a more optimistic scenario, expecting core PCE inflation to cool to 2.2% by the end of 2026, driven by decelerating housing costs [8][9] - Conversely, Bank of America predicts core PCE inflation will remain at 2.8% through 2026, attributing this to ongoing tariff impacts [12]

Poverty Line Calculation - The traditional poverty line calculation, based on families spending one-third of their income on groceries, may be outdated [1] - The original formula was developed by Molly Orch, observing that families spent roughly 33% of their income on groceries [1] Shift in Household Spending - Between 1963 and 2024, household spending composition has significantly changed due to exploding housing costs, healthcare expenses, and childcare costs [2] - Food at home now accounts for only 5% to 7% of household spending for most families [3] - Housing now consumes 35% to 45% of household spending [3] - Healthcare accounts for 15% to 25% of household spending [3] - Childcare can consume 20% to 40% of household spending for families with young children [3] Revised Poverty Threshold - Applying the original logic with updated spending proportions, the multiplier should be 16 instead of 3 [4] - The income inadequacy threshold for a family of four is estimated to be between $130,000 and $150,000 per year [4]

RT Nick Szabo (@NickSzabo4)@charlesmurray That said, such manufacturing jobs at such wages are now gone, and the service jobs pay far less as a proportion of housing costs -- even of entry level houses like these -- than in the 1950s. ...

More Australian retirees are renting than ever, as soaring housing costs and longer working lives expose the limits of the nation’s much-lauded pension system https://t.co/lp9n8HaRiF ...

Economic Disillusionment - Chinese youth embrace "xiexiu" (躺平, lying flat) indicating disillusionment with traditional paths [1] - A weak economy contributes to the sentiment of disillusionment [1] - Rising housing costs exacerbate the challenges faced by young adults [1] - Uncertain job prospects further fuel the desire to reject conventional norms [1] Social Impact - Young people are questioning the value of adhering to conventional expectations [1]

Housing Market Trends - High housing costs are prompting ex-spouses to take turns in the family home [1] - Financial viability exists, but establishing boundaries presents a challenge [1]

Market Trends - Rental prices declined for the 22nd consecutive month in May [1] - Reduced housing costs, driven by falling rental prices, could contribute to lower inflation readings [1]