As we close the book on 2023, many American families are facing a harsh reality: their dollars don’t stretch as far as they used to. According to CBS News, to maintain the same standard of living enjoyed at the beginning of 2021, the average American household will need to spend an additional $11,434 today. This is due to the soaring rate of inflation, which has caused prices to rise across the board.

Inflation rates have hit the highest levels in four decades, and the effects are being felt by everyone, especially those who were already struggling to make ends meet. CBS News polling from September reveals that less than half of Americans, 47%, can live comfortably with little money left over after expenses. This is down from 56% in 2019. On the flip side, over half, 53% of Americans, say they either have just enough or cannot meet their expenses, up from 44% in 2019.

The categories that require more spending include food, transportation, housing, and energy, making up nearly 80 cents of every extra dollar spent. The Senate Joint Economic Committee’s Republican analysis reveals these basics were short by an average of nearly $14,000 last year. A staggering six out of ten Americans were unable to meet their basic needs in 2022.

While wages have grown, they haven’t kept pace with inflation. The average hourly wage has increased 13.6% since January 2021, but inflation has outstripped that growth with a 17% spike, according to government data.

The burden of inflation isn’t evenly distributed across states. Colorado families face the highest expenses hike this year to maintain their 2021 standard of living, needing an extra $15,000 per year. This is largely due to a sharp increase in housing costs. On the other end of the spectrum, Arkansas had the lowest expenses increase with an $8,500 hike.

Even the cost of holiday celebrations has spiked. The price of a Thanksgiving meal for ten people cost an average of 14.7% more this year than in 2021, and Halloween candy prices saw double-digit inflation for the second year in a row.

The bottom line is clear: Americans are feeling the pinch. As we move into 2024, it’ll take more than $11,000 extra to maintain the same standard of living as in 2021. It’s a sobering reality that underscores the urgent need for effective solutions to address the rampant inflation eroding Americans’ purchasing power.