CSI Inflation Index Paints Miserable Picture for Oregon Households
The recently published Oregon Inflation Misery Index highlights how much more income Oregonians need to spend to uphold their standard of living under conditions of heightened inflation since 2019.
Average Household Incomes Have Eroded by 20.6%
The shocking news is that average household incomes in Oregon have eroded by 20.6% and by 15% of personal income.
Eye-Watering Takeaways
Three eye-opening takeaways from the index are:
- Excessive inflation since 2019 costs the average Oregon household $22,034 more annually, or 20.6% of income.
- Inflation during the first half of 2024 was more than double the peak at the beginning of the Great Recession, from December 2007 until June 2009.
- The average Oregonian must spend $9,143 more annually – close to 13% of annual income – to consume the same services and goods as in 2019.
A closer look at what it is costing Oregon residents is that rampant inflation has increased average household expenditure to maintain 2019 standards by:
- $4,808 for food
- $3,659 for housing and utilities
- $817 for gasoline
- $767 for recreation
Oregon Households are Struggling to Keep Financially Afloat
The report says inflation will have to be pegged at normal or below normal rates for a prolonged period and will have to be coupled with strong income growth for people to recover the purchasing power lost during the post-COVID inflationary period.
Vice President of Policy & Research at CSI Oregon, Mark McMullen, says inflation has eroded the financial stability of Oregon residents. McMullen says many households are struggling to keep financially afloat because of the inflation surge since 2020 has outpaced wages.
He points out that the CSI Oregon Inflation Misery Index highlights the serious and lasting effect of high inflation on purchasing power and family budgets.
References
https://www.commonsenseinstituteus.org/oregon/research/jobs-and-our-economy/inflation-misery-index