Soaring prices are eating into the purchasing power of American consumers, who are no longer renewing Netflix Inc's streaming services and are beginning to limit spending on big-ticket items such as used cars.

Since the outbreak of the new crown epidemic, the price of used cars in the United States has soared by 90%, pushing inflation to its highest level in 40 years. Now, as interest rates soar, the used-car market is cooling significantly.

Wall Street mentioned yesterday.In April, the Mannheim used car value index, which tracks wholesale prices of used cars in real time, fell 1% from March, the third consecutive month of decline since January, and an even more significant monthly decline based on the three-month average rate of change, reaching-6.4%.

This figure is second only to December 2008-11.5% and April 2020-11.2%, when one was in a period of financial crisis and the other was a period of market panic caused by the epidemic.

At present, the Federal Reserve is rapidly tightening the financial environment in order to curb inflation.Although the Fed wants to hand over a perfect answer, the rapid rise in interest rates is giving this heavy reliance on consumption and getting used to "borrowing money to spend".The world's largest economy is causing trouble.

The analysis shows thatThe cooling of the used car market may be a sign that the US economy is about to slow.

If we compare the change rate of the price index of used cars in the United States with the interest rate of used car loans, it is obvious thatInterest rates riseThe rise in prices has been curbed because fewer and fewer people can afford to buy cars. As interest rates soared in April, used-car sales slowed sharply, with retail sales down 13% from March.

Postponing or canceling the purchase of used cars may be just a microcosm of Americans'"consumption downgrade".

Some of the world's largest retailers and manufacturers say there are signs that people are increasingly reluctant to accept higher prices and opt for lower-priced products, according to the Wall Street Journal. Including Marlboro cigarette maker Altria, mattress company Tempur Sealy, flower retailer 1-800-Flowers.com and some groceries saidConsumers are increasingly fond of discounted products and low-cost brands, and demand for high-priced products is declining.

Americans of all income levels are changing their spending plans because of inflation, according to a study released last Thursday by investment bank Jefferies. The bank's recent survey of about 3500 American consumers showsMore than 70% said they had turned to cheaper alternatives in food and household necessities. Nearly 40 per cent said they would postpone buying big-ticket items such as furniture and electronics.

The downgrade of consumer spending on entertainment has taken place.Streaming giant Netflix Inc reported in the first quarter of this year that the platform lost its net users for the first time since 2011. In the UK, consumers cancelled about 1.5 million video subscription accounts in the first quarter of this year, a record level.