SHOPPERS should be alert, a former Home Depot CEO said as he issued a stark warning about the state of the economy.
Bob Nardelli warned that consumers are in for a “difficult time” as inflation continues to wreak havoc on the cost of living.
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Your comments come after an analysis of the Wall Street Journal shows that household net worth has declined under the current administration as households continue to struggle with inflation.
“The inflation pipeline has a long tail,” said Nardelli Fox Business on Monday.
“It’s really depressing to see the impact on the family’s net worth and income level,” he said.
“While we have seen wage increases of 40% in some cases, they have been completely absorbed by inflation and the cost of living.”
Nardelli added that this is having a “devastating impact” on consumers, as the businessman accused the Biden administration of a “series of disasters and mistakes.”
These have put “tremendous pressure on the failings of our economy and are about to collapse”, warned Nardelli.
As a result, he claims that whoever wins the next election will be “hit with a wrecking ball” to try to repair the damage.
“We’re going through a difficult time, I would say.”
Although CPI data released last week shows promising signs that inflation continues to trend downward, Americans are still struggling.
“The country is not out of the woods from the threat of inflation, but we may start to see the end of the forest,” said Christopher Rupkey, chief economist at FWDBONDS. Reuters.
So far, for four months of 2024, the Consumer Price Index (CPI) has been high, with rent and gas prices having a huge impact on people’s wallets.
The cost of housing, in which rents play a major factor, increased by 0.4% for the third month in a row, while gasoline prices rose by 2.8%.
Investment firm Jefferies Global has detailed how some industries will take time to react to changes in inflation.
“The shelter component of the CPI data is about 12 months behind actual changes in new rental costs, according to the rent index observed by Zillow,” the company’s head of equity, Chris Wood, told Fox Business .
“As a result, official shelter CPI data is underestimating rental costs by 7.4%, indicating that the fall in inflation may take longer than anticipated.”
Meanwhile, The US Sun previously reported how Nardelli criticized retailers for undervaluing consumers as they battle inflation.
A series of disasters and mistakes have created tremendous pressure on our failing economy and are about to collapse.
Bob Nardelli
The former CEO stated that several factors contributed to the increase in supermarket prices.
This includes salary increases, job changes and reduced inflation.
“The general population will not be fooled by this aversion to trying to blame corporate America for inflation,” he said. Fox Business earlier this year.
This story originally appeared on The-sun.com read the full story
