Nearly 90% Americans Alter Spending Amid 29% Grocery Price Surge

U.S. consumers are increasingly feeling the financial strain from rising inflation, particularly as grocery and gas prices soar, reshaping spending habits and forcing many to cut back on nonessential purchases and seek discounts. Surveys from TD Bank reveal that essentials like groceries now dominate credit card spending, with nearly half of respondents citing groceries as their top spending category, while financial hardships have led many families to reduce meal sizes or skip meals altogether. Despite inflation rates being officially lower, consumers perceive food inflation to be much higher, contributing to increased shopping at dollar stores and a focus on low prices and promotions. The cost of food has risen dramatically since 2020, with reports of a 24% increase in grocery prices and even steeper rises in items like coffee, prompting advice on budgeting strategies such as meal planning, buying generic brands, and using loyalty programs. Economic data highlights that the affordability crisis extends beyond groceries to transportation and dining out, exacerbated by a 25% loss in the purchasing power of the U.S. dollar and slowed wage growth. The Federal Reserve's recent interest rate cuts have raised concerns about further inflationary pressures, complicating the financial outlook for American households.