U.S. households continued to feel the pinch of inflation late last year, even as price pressures ebbed.
Most Americans said their financial situation changed little in the last year, but parents reported that times had gotten harder, according to Federal Reserve data.
About 72% of adults were doing at least okay financially as of October 2023, the Fed’s annual survey on household economics and decision making showed.
That was down from 78% in 2021 and the lowest rate since 2016, though little changed from 73% in 2022. The share of parents doing at least okay financially dropped 5 percentage points to 64%, the lowest level since 2015 when data collection began.
Inflation remained the top financial concern, the report said. Sixty-five percent of adults said high prices had made their situations worse, even though consumer inflation fell sharply from around 9% in June 2022 to below 4% by the time the survey was taken. And while 34% said their family’s monthly income had risen in the past year, 38% said their spending had also increased.
Is inflation still pinching your wallet? If so, what are the biggest pain points? How are you managing those costs? And, if you’re a parent, let me know how and where inflation is impacting you? (For me, it’s college tuition!)
Write me at onthemoney@thomsonreuters.com.
