US Consumers Drain Savings as Prices Jump 25% in 5 Years
Updated
Updated · USA TODAY · Jul 17
US Consumers Drain Savings as Prices Jump 25% in 5 Years
3 articles · Updated · USA TODAY · Jul 17
Summary
June inflation hit 3.5%—higher than any month in 2025—extending a five-year stretch in which consumer prices have climbed more than 25% and leaving many Americans cutting spending or tapping savings.
Households described paychecks that no longer keep up: a New York couple withdrew retirement money for a $2,000 truck repair, while a Michigan worker said utility bills rose to about $300 a month from the low $200s.
Housing and childcare are adding to the squeeze in high-cost areas, with a Culver City couple saying condos run about $900,000 and daycare for one child costs $1,600 a month.
Retirees and families also face pressure from health costs: one California woman said Social Security does not cover rent and utilities, while ACA premiums for people keeping their plans rose 114% in 2026 after enhanced subsidies expired.
The strain is reinforcing a broader sour mood around the economy, echoing recent polling that found 61% of Americans pessimistic as tariffs, high gas prices and the Iran war keep living costs elevated.