US Savings Rate Plummets to Record Low as Inflation Levels Remain High

US dollar banknotes are displayed in this illustration taken, February 14, 2022. As inflation rises, disposable income reduces along with savings. Reuters/Dado Ruvic//File Photo

The personal savings rate of Americans has dipped to the lowest level in 14 years as sky-high inflation takes a big chunk of people’s budgets.

The U.S. personal saving rate, as a percentage of disposable income, fell to 4.4 percent in April, down from 5 percent in March, the lowest since 2008. The savings rate for February was 5.9 percent and for January 6 percent.