Americans Squeezed by High Prices for Essentials While Trying to Afford Major Financial Goals
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Nearly 90% of Americans reported increased expenses over the past year, with most seeing rises of less than $2,500. Food, gas, housing, and utilities were the categories with the biggest unexpected price hikes.
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Inflation has come down from its peak but remains high at 3.7% overall. However, food prices rose much faster at 5.8% and could hit 6.1%.
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Non-inflationary factors like student loans and interest rates have also piled onto budgets. 45% of student loan borrowers feel extremely stressed about resuming payments.
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People are coping by prioritizing essentials, reducing discretionary spending on entertainment and luxury items, and budgeting more carefully.
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Financial experts say clients feel anxious about affording necessities and meeting major financial goals amidst rising prices for groceries, housing, healthcare, and other staples.