Prices are rising for many Americans, with 65% of consumers saying the increases are outpacing their income, according to a J.D. Power survey of 4,000 U.S. adults conducted in February 2026.
Recent inflation data adds to that pressure, with the annual rate rising from 2.4% in February to 3.3% in March, according to consumer price index data released Friday. The increase was driven largely by a surge in energy costs as gasoline prices spiked amid the Iran war. Gasoline prices rose 21.2% in March, accounting for nearly three-quarters of the overall increase, according to the Bureau of Labor Statistics.
While the annualized inflation rate had been trending lower in the past few months, it remains above the Federal Reserve’s 2% target and hasn’t been below that level since February 2021. Cumulatively, prices are up about 16% over the past four years, according to the CPI.
At the same time, income gains have been modest. After accounting for inflation, real hourly earnings have risen only about 1.4% over the past year, suggesting limited improvement in purchasing power for many workers, according to U.S. Bureau of Labor Statistics data.
As a result, many consumers are feeling squeezed. Some 56% of Americans say everyday life has become less affordable over the past year, with many cutting back on dining out and groceries to stay on budget, according to the CNBC and SurveyMonkey Quarterly Money Survey, released in April, which polled 3,494 U.S. adults at the end of March.
