High Gas Prices, Biggest Inflation Spike in Three Years Spark Major Affordability Concerns 

• The total share of financially unhealthy consumers in the U.S. stayed flat at 69% in April
• 87% of consumers are at least somewhat worried that the prices for everyday items will increase in the coming months 

• 62% say they have delayed bigger purchases in the last month due to higher costs of everyday goods. 

   

The financial health^[1]  of consumers in the United States has been teetering on the edge for years. And as each month passed without significant improvement, concern among analysts grew that a major global event could swing the scale for many toward economic distress. As consumer prices in April rose 3.8% from a year ago against the backdrop of an uncertain economy – the biggest annual increase since May 2023 – the prevailing fear is that we have reached that tipping point.

Overall, 87% of consumers say that they are at least somewhat worried that the prices for everyday items will increase in the coming months. What’s more, 62% say they have delayed bigger purchases in the last month due to higher costs of everyday goods. 

With the price at the pump stuck stubbornly high and consumers in search of any relief they can get, it begs the question: Is there any relief in sight?

Financial Health Stays Flat                   

In April, the total share of financially unhealthy consumers, defined as vulnerable, overextended or stressed, held steady to 69%. That is largely in line with the previous four months.

Affordability Concerns Intensify

Concern over the rising cost of goods has reached a fever pitch. The 87% of consumers that are at least somewhat worried that the prices for everyday items will increase in the coming three months includes nearly all vulnerable (91%) and stressed (93%) consumers.  Affordability fears have intensified too, as 41% say they are extremely worried, up from 37% just two months ago. So while overall financial health may seem unchanged on the surface, the constant lag in health has created a snowball effect of sorts, making these anxieties an acute, pressing nationwide issue.

Over half (52%) of consumers also say their usual expenses are less affordable than they were six months ago. That reflects a 6-percentage-point increase from February. Stressed (64%), vulnerable (60%) and consumers that are over the age of 40 (57%) were most likely to express this sentiment, but these fears are prevalent among even the healthy consumers (45%, up 9-percentage points since February).

Gasoline on the Fire

At the heart of affordability issues are the soaring prices of gasoline. As the Trump administration considers suspending the federal gas tax, 72% of consumers say they have paid more for gas than they had in the previous month, a 32-percentage point increase from February. Consumers also cite higher grocery prices (78%, up 3-percentage points).

To accommodate these higher prices, consumers have been putting off larger purchases. Overall, 62% say they have delayed bigger purchases in the last month due to higher costs of everyday goods. Vulnerable consumers (72%) and those under the age of 40 (67%) are the most likely to say they have delayed such purchases, but these measures are also being taken by almost half of healthy consumers (46%).

Battle Tested Relationships

For the better part of five years, consumers have been trying to acclimate to a tenuous financial environment. But with this latest round of volatility, it looks like the rubber is set to finally meet the road, as we anticipate seeing decreases in savings, increases in debt, postponement of homeownership, delayed retirement plans and even a portion of consumers dipping into their 401(k) for emergency funds. That means that consumers will be on the hunt for creative ways to keep their finances afloat.

For banks looking to help their customers through these turbulent times, they’ll have to take a proactive approach. New lending options, and budgeting and savings tools should be vital pieces of outreach strategies that banks can offer to help customers stave off hardship. Fortunately, for banks that have already been working closely with their customers to help them survive these trying times, they should be able to fall back on the trust they’ve built over the years. And that trust will hopefully lead to long-term customer relationships for the future.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in April 2026. It was authored by Jennifer White, managing director of financial services intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.