LOS ANGELES: Americans are increasingly feeling financial pressure as the cost of essentials such as groceries, gasoline, and utilities continues to climb. Economists attribute this trend to a combination of new US tariffs and rising global energy prices linked to geopolitical tensions, creating a dual strain on household budgets and potentially slowing economic growth just as many families had begun to recover.
Katie Peyrey, a 66-year-old caregiver and janitorial worker from Burbank, California, described her frustration. Living on minimum wage while supporting her autistic grandson, she said her monthly expenses have risen from about $2,300 to over $2,500, exceeding her $2,400 income. Despite careful budgeting and borrowing from family and friends, she says she can no longer make ends meet and feels uncertain about the future. Peyrey added that she had supported Donald Trump in hopes of economic improvement but now feels disappointed.
Others share similar concerns. Christian Devito, a grocery store health and safety worker in Los Angeles, reported his monthly expenses have increased by at least 15% in recent months. Commuting costs alone rose from $50 to over $70 per week, while food and utility bills have also surged. Initially cutting discretionary spending like entertainment and haircuts, he now finds himself reducing food purchases, raising concerns about long-term affordability if inflation persists.
Recent data from the U.S. Bureau of Labor Statistics supports these experiences. In March, energy prices rose 10.9% compared to the previous month, with gasoline prices jumping 21.2%. Such increases directly impact consumers, particularly commuters, while also raising broader costs through supply chains.
Consumer spending, which drives roughly two-thirds of the U.S. economy, is now under pressure. The Federal Reserve has indicated it may keep interest rates elevated to contain inflation, further increasing borrowing costs for households.
Tariffs are also playing a significant role. A Federal Reserve analysis found that tariffs implemented through late 2025 increased core goods prices by 3.1% by early 2026, with costs largely passed on to consumers. The Peterson Institute for International Economics estimates such tariffs could cost the average U.S. household over $1,200 annually. (IANS)