The Impact of Inflation on Americans' Finances and Spending Habits

A new survey by the Federal Reserve shows that despite a strong job market and rising incomes, the rising cost of living due to inflation is taking a toll on American families. The share of U.S. adults who said they were doing “at least OK financially” fell sharply last year, with 35% of Americans saying they were worse off than a year earlier, the highest share in the nine years the question has been asked. The erosion in financial health was broad-based, cutting across racial and ethnic lines, educational categories, and income groups.