Americans need an extra $11,400 today just to afford the basics

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The typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs, according to a recent analysis of government data.

Such figures underscore the financial squeeze many families continue to face even as the the rate of U.S. inflation recedes and the economy by many measures remains strong, with the jobless rate at a two-decade low.

Even so, many Americans say they aren't feeling those gains, and this fall more people reported struggling financially than they did prior to the pandemic, according to CBS News polling. Inflation is the main reason Americans express pessimism about economy despite its bright points, which also include stronger wage gains in recent years.

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Where inflation bites hardest

Around the U.S., the state with the highest additional expenditures to afford the same standard of living compared with 2021 is Colorado, where a household must spend an extra $15,000 per year, the JEC analysis found. Residents in Arkansas, meanwhile, have to spend the least to maintain their standard of living, at about $8,500 on an annual basis.

The differences in costs are tied to local economic differences. For instance, typical housing in Colorado requires an additional $267 per month compared with January 2021, while other states saw much smaller increases, the analysis found.

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