Key facts
- US inflation in September was 3.7% year-on-year, an increase from 3.4% in August.
- High energy prices, including record diesel costs and rising gasoline prices, are a major driver of increased living expenses.
- Americans' economic confidence index stood at -40 in September.
- 95% of respondents in a survey believe the US is experiencing an affordability crisis.
Americans are grappling with the persistent effects of rising inflation, which is making everyday necessities and long-term financial goals increasingly difficult to achieve. Official figures released on Wednesday showed that prices rose by 3.7% over the past 12 months to September, an increase from the 3.4% rise recorded in the 12 months to August.
High energy prices have been a significant contributor to the elevated cost of living, with diesel prices reaching record highs and gasoline prices also climbing. This has placed a considerable burden on consumers.
Kathryn Vaughn, a 46-year-old elementary school art teacher in Tennessee, described the situation as "rough" and "insane." She works multiple jobs, including as a facilitator at an after-school program, to supplement her income. Vaughn has resorted to various measures to make ends meet, such as hand-modeling for a local jewelry store, selling items on Facebook, and reselling clothes online. She even writes obituaries for extra money, but still finds it insufficient to support her family of four.
Punal Bhavsar, 39, had hoped to buy a home in 2026, anticipating lower interest rates. However, he now believes this is unlikely due to the rising cost of goods and persistent high interest rates. Bhavsar highlighted the price of gasoline, which he pays nearly $6 per gallon for premium fuel in California, as a major concern. He stated that controlling gas prices would be a primary issue for him when voting in the upcoming midterm elections.
Caitlin Green, who moved to Utah seven years ago, has found it increasingly challenging to afford staples like ground beef, which she says has jumped from $2 to $8 per pound. She and her husband have switched to alternatives like ground turkey or chicken, viewing ground beef as a luxury. Their monthly grocery bill has doubled from $200 to $400.
The broader economic sentiment reflects these individual struggles. The Gallup Economic Confidence Index, which measures Americans' assessments of current economic conditions and their outlook, stood at -40 in September. A summer survey by The Guardian found that a striking 95% of respondents believe the US is currently facing an affordability crisis.