Americans owed a stunning $887 billion in credit card debt as of June 2022, according to recent data from the Federal Reserve Bank of New York. That was an increase of about 5.5% from the first quarter of the year, and a 13% increase from the year-ago period.
“Americans are borrowing more, but a big part of the increased borrowing is attributable to higher prices,” researchers for the New York Fed said in a news release.
Still, despite the heavier use of credit cards and debt, the New York Fed noted that delinquency rates remain relatively low.
The numbers come against the backdrop of stubbornly high inflation that has shown little sign of cooling off: New data released last week by the Labor Department showed the consumer price index unexpectedly climbed 0.1% in August, dashing hopes for an inflation slowdown. On an annual basis, inflation soared 8.3%, hovering near the fastest pace since 1981.