A JD Power survey of 4,000 U.S. adults conducted in February 2026 found that prices are rising for many Americans, with 65% of consumers saying price increases are outpacing their incomes.
Recent inflation data has added to the pressure, with the annual rate rising to 3.3% in March from 2.4% in February, according to consumer price index data released Friday. This increase was primarily due to soaring energy costs due to soaring gasoline prices during the Iran war. Gasoline prices rose 21.2% in March, accounting for nearly three-quarters of the total increase, according to the U.S. Bureau of Labor Statistics.
Although annual inflation has been trending downward over the past few months, it remains above the Federal Reserve’s 2% target and has not fallen below that level since February 2021. According to the CPI, prices have increased by a cumulative approximately 16% over the past four years.
At the same time, the increase in income was small. Real hourly wages, adjusted for inflation, have increased by only about 1.4% over the past year, according to data from the U.S. Bureau of Labor Statistics, suggesting limited improvement in purchasing power for many workers.
As a result, many consumers are feeling squeezed. About 56% of Americans say daily life has become less affordable in the past year, with many cutting back on eating out and buying groceries to stick to their budgets, according to the CNBC/SurveyMonkey Quarterly Money Survey released in April and surveyed 3,494 U.S. adults at the end of March.
“Even among high-income people, there’s a growing sense that day-to-day costs are quietly rising over time,” said Gregory Guenther, a certified financial planner in New Jersey. “The problem isn’t that people are earning less, it’s that money simply isn’t growing as much as it used to.”
where Americans are retreating
“When people feel like they’re working hard and not making progress, it creates stress and makes them reconsider both their short-term spending and long-term decisions,” Gunther said.
In addition to cutting back on food costs, about half of Americans say they’re putting off purchasing clothing and household goods, according to data from CNBC and SurveyMonkey. Similarly, 42% of respondents said they were spending less on personal care services like haircuts and pedicures, 22% reported giving up gym memberships, 21% alcohol, and 14% giving up ridesharing.
These findings are consistent with JD Power data showing that about half of Americans are buying fewer items to stay within their budget.
Households are also turning to other ways to keep things afloat. According to a CNBC survey, about 39% say they have used a credit card to pay for groceries and other necessities because they couldn’t afford it.
The broader economic mood has been on the decline since early 2025, with many consumers blaming the Iran conflict for the worsening economic situation, and a long-term University of Michigan survey showed consumer sentiment fell to an all-time low in April.
“The major drivers of this anxiety are a combination of persistent inflation, rising borrowing costs, and uncertainty around jobs and the broader economy,” Gunther said. “All this comes on top of extreme instability around the world.”
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