Colorado households must now spend an extra $15,000 per year to maintain the same standard of living compared to 2021.

The financial strain on American households continues to grow under the Biden administration's economic policies, with the typical household now needing an additional $11,434 annually just to maintain the same standard of living as in January 2021, according to a recent analysis of government data.

This analysis, conducted by Republican members of the U.S. Senate Joint Economic Committee, highlights the impact of skyrocketing inflation on everyday Americans.

Despite the Biden administration's assertions of a strong economy and low jobless rates, many Americans are feeling the squeeze.

CBS News polling reveals that more people are struggling financially now than before the pandemic, and inflation is a major factor contributing to their pessimism. While wage gains have been stronger in recent years, the rising cost of living erodes those gains.

Inflation has hit a 40-year high, making it increasingly difficult for families to make ends meet.

The Biden administration dismisses the analysis as "flawed," citing federal labor data that shows a 16% increase in per capita disposable income since December 2020. They also point to the fact that 14 million more Americans have jobs today compared to when President Biden took office. However, it is important to note that the Republican analysis focuses on the impact of inflation on households, which the administration seems to downplay.

Economists attribute the high inflation rate to various pandemic-related factors, including stimulus spending, global supply-chain disruptions, and labor shortages.

While inflation is possibly cooling, many consumers are not feeling the relief.

A Bankrate survey found that 60% of working Americans believe their income has lagged behind inflation over the past 12 months.

The Republican analysis reveals that food, transportation, housing, and energy are the main categories where consumers face heavier spending just to stay afloat. These essentials account for nearly 80 cents of every additional dollar spent. Middle- and low-income Americans are particularly vulnerable, living precariously on the edge.

The Ludwig Institute for Shared Economic Prosperity found that the average income needed to cover the basics fell short by almost $14,000 in 2022.

The impact of inflation varies across states, with Colorado being the state with the highest additional expenditures needed to maintain the same standard of living compared to 2021. Colorado households must now spend an extra $15,000 per year.

READ MORE:

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• COLORADO'S GROWING CONCERN: MASSIVE LAYOFFS PLAGUE THE STATE

• PRICE WAR FORCES GAS PRICES BELOW $2 ON ROAD SOUTH OF DENVER

• WALMART SHARES TUMBLE AFTER WARNING ABOUT WEAK HOLIDAY SALES

Differences in costs are tied to local economic factors, with housing costs being a significant driver in Colorado.

While inflation might be ticking downward slightly, it is important to recognize that prices are not declining across the board. Consumers are still paying more on top of the higher prices locked in during the surge in inflation in 2022. This reality, combined with stagnant wages and rising costs, continues to put a strain on American households – including Coloradans.