The Cost of Living in America: An Extra $11,400 Needed

Americans need an extra $11,434 per year to maintain the same quality of life as in 2021, according to analysis from the US Senate Joint Economic Committee. Colorado residents face the highest additional expenditures of $14,995 annually, followed by Utah and Arizona. Arkansas has the lowest extra expenses at $8,528 per year. Inflation rates have fallen but remain above the Federal Reserve's target, with a 17% increase in inflation since January 2021 compared to a 13.6% rise in average hourly pay. The variation among states is due to differences in the prices of basic living essentials.