Americans Are Pulling Back on Big Spending as Inflation Anxiety Hits New Highs

Benzinga reported Thursday that a newly released JD Power survey shows inflation anxiety gripping American households at levels not seen in years. Six in ten consumers postponed significant purchases over the past month alone.

Worry Levels Are Climbing Fast

The JD Power data found that 87% of respondents expect everyday prices to keep rising. More striking, 41% now label themselves “extremely worried” about inflation. That figure is up from 37% just two months earlier. The shift signals a rapid deterioration in consumer sentiment even before any fresh price shocks have fully worked through the system.

JD Power also found that 69% of American consumers remained financially unhealthy in April. Many reported shrinking purchasing power and mounting difficulty covering routine costs. The survey flagged that Americans over 40, lower-income households and financially stretched consumers are feeling the pain most acutely.

Background: A Year of Persistent Price Pressure

Consumer prices rose 3.8% year-over-year in April, marking the sharpest annual increase since May 2023. Gas and grocery bills are at the center of household frustration. Nearly three-quarters of respondents said they paid more at the pump versus the prior month. Around 78% reported higher grocery bills over the same period. More than half of all consumers said their regular expenses feel less manageable than they did six months ago.

The cumulative weight of those costs is already altering long-term financial behaviour. The JD Power report warned that sustained pressure may shrink household savings, drive up personal debt and push milestones like homeownership and retirement further out of reach. Some consumers may turn to emergency retirement account withdrawals just to cover basic costs, the report cautioned.

Geopolitical Risks Add to the Pressure

Economists are flagging additional headwinds that could deepen inflation anxiety in the months ahead. Economist Mark Zandi recently described the U.S. economy as “fragile,” citing slowing consumer spending alongside elevated prices and geopolitical disruption. Rising energy costs tied to tensions near the Strait of Hormuz are among the factors that analysts warn could push prices higher still.

A separate CNN/SSRS poll found that 77% of Americans believe current administration policies have already driven up their cost of living. With midterm elections approaching, affordability is shaping up as a defining political and economic fault line for the rest of 2026.

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