Rising Prices Strain American Budgets, Study Finds; 82 percent say money no longer goes as far

Rising Prices Strain American Budgets, New Study FindsPhoto byAndres PerezonUnsplash

A recent study by Empower reveals significant financial strain on Americans due to rising prices. Over 60% of respondents report a decrease in purchasing power, with 82% noting that their money no longer goes as far. Essential items are consuming larger portions of budgets, leading 27% to set a price limit on groceries, with many considering eliminating certain staples from their shopping lists. Prices have surged 20% since February 2020, pushing consumers to cut back on items such as coffee, bread, fresh produce, and snacks.

Quality concerns are also prevalent, with 45% of respondents observing reduced product quality. Many are shifting to generic brands and finding ways to save, such as using store apps and memberships. Additionally, rising costs are impacting long-term financial goals, with nearly half of Americans feeling priced out of retirement and other significant life events. Despite these challenges, 28% remain hopeful for price decreases by year’s end. For more details, visit Empower's full report, "The Big Shrink," at The Currency™.