Affordability Anxiety Intensifies As Consumers Brace For Higher Prices, Report Says
By CU Today Staff —
NEW YORK—A new Banking and Payments Intelligence Report from J.D. Power found financial stress among U.S. consumers remained stubbornly elevated in April, with 69% classified as financially unhealthy as rising prices for gasoline, groceries and other essentials continued to pressure household budgets.
The May 2026 report from J.D. Power found 87% of consumers are at least somewhat worried prices for everyday items will continue climbing in the coming months, while 62% said they delayed larger purchases over the last month because of higher day-to-day living costs. The findings come as consumer prices in April rose 3.8% year-over-year, marking the largest annual increase since May 2023.
According to J.D. Power, affordability concerns are intensifying even as overall financial health metrics have remained largely unchanged for several months. Forty-one percent of consumers now describe themselves as “extremely worried” about future price increases, up from 37% two months earlier, with vulnerable and financially stressed households reporting the highest levels of concern.
More than half of consumers—52%—said their regular expenses are less affordable than they were six months ago, a six-percentage-point increase since February, the report found. Consumers over age 40, along with financially stressed and vulnerable households, were most likely to report worsening affordability pressures, although even financially healthy consumers showed growing concern.
Gasoline prices emerged as one of the biggest drivers of anxiety, according to J.D. Power. Overall, 72% of consumers said they paid more for gas in the past month than they had previously, while 78% reported paying more for groceries. The findings come as the Trump Administration weighs a possible suspension of the federal gas tax in an effort to ease pressure at the pump.
The report also found younger consumers and financially vulnerable households are increasingly postponing major purchases to cope with higher costs. Analysts with J.D. Power warned the prolonged financial strain could eventually lead to lower savings rates, rising debt levels, delayed homeownership and retirement plans, and greater reliance on emergency withdrawals from retirement accounts, adding that financial institutions may need to expand budgeting, savings and flexible lending tools to help consumers navigate ongoing economic pressures.
Originally reported by CU Today.