It now costs over $300,000 to raise a child due to inflation.

Now a middle-income couple with two children needs $310,605 to raise their youngest. child from birth to high school, according to a recent assessment from Brookings Institution.

The score is based on 2017 USDA report. At the time, the agency calculated that a middle-income couple needed to raise a child until age 17 at a cost of $233,610. the cost of college education.

Brookings found that today’s record high inflation has risen sharply. these costs. Brookings first shared the numbers with Wall Street Journal.

“It makes people recognize that when you have a family or when you increase your family size, you have to make some compromises with other items in your budget,” said Isabelle Souhill, senior fellow in economics. research at the Brookings Institution, who co-authored the study with Brookings Senior Fellow Morgan Welch.

Housing is the biggest expense for families and accounts for almost a third of the total cost of raising children. The median house price in July — $403,800 — was up 10.8% year-over-year, representing more than a decade of monthly gains from last year. And prices have risen across the country: in 80% of U.S. metropolitan areas, home prices rose by double digits last quarter.

According to the USDA, food is the second most expensive budget item for raising a child, accounting for 18% of the total cost in the original calculation. Sawhill noted their recent the estimate did not adjust the allocation of costs to various items.

Grocery prices have risen 13.1% over the past year, the biggest annual increase since 1979, according to the Bureau of Labor Statistics. Almost all basic foodstuffs have risen in price due to inflation: prices for eggs rose by 38%, for chicken – by 17.6%, and for milk – by 15.6%.

Sawhill said the valuation already had to make a big guess about what inflation would look like in the future. The figure is still based on spending on the child was born in 2015, so Brookings had to estimate the rate of inflation after the child’s current age of seven.

When he published his scores, The USDA used an inflation rate of 2% from 2015 onwards, but Sawhill assumed 4% in the new estimate, looking at historical trends. this arose after the US emerged from a high-inflation environment in the late 1970s.

“In 1979, the Federal Reserve hit the brakes hard to bring down what was double-digit inflation at the time,” Sawhill said. “And it took at least ten years for those numbers to return to normal.”

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