Middle-Income Americans Face Increasing Financial Stress Amidst Ongoing Inflation
DULUTH, Ga. – Middle-income Americans are grappling with financial stress due to inflation, according to the latest findings from Primerica’s Financial Security Monitor™ (FSM™). The report revealed that a staggering 62% of middle-income Americans expressed concern over their finances, a significant increase from the 57% reported during the fourth quarter of 2024.
Rising Inflation Rates
Inflation, defined as the increase in the general price level of goods and services over time, has been a major concern for many Americans. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for all urban consumers increased 7.5% year-over-year in January 2025. This marked the fastest pace of inflation since February 1982.
Impact on Middle-Income Americans
The rising inflation rates have left many middle-income Americans feeling financially squeezed. Forty-six percent (46%) of those surveyed by Primerica anticipated being worse off financially in the next year, up from 27% in December 2024. This sentiment was echoed by a recent survey by the Federal Reserve Bank of New York, which found that 36% of respondents reported having difficulty making ends meet, the highest level since 2013.
Global Impact
The financial stress experienced by middle-income Americans is not an isolated phenomenon. Inflation is a global concern, with many countries experiencing similar price increases. The World Bank has warned that high and persistent inflation could push millions more people into poverty, particularly in low- and middle-income countries.
- According to the International Monetary Fund, global inflation is projected to reach 4.1% in 2025, up from 3.6% in 2024.
- Europe, in particular, is facing significant inflationary pressures, with the European Central Bank forecasting an inflation rate of 5.1% in 2025.
- The impact of inflation is not limited to developed economies. In developing countries, food prices have risen sharply, with the Food and Agriculture Organization’s Food Price Index reaching an all-time high in February 2025.
Conclusion
The financial stress experienced by middle-income Americans due to inflation is a pressing concern that extends beyond national borders. As prices continue to rise, many individuals and families are finding it increasingly difficult to make ends meet. The impact of inflation on global economies is significant, with potential repercussions for poverty levels and economic stability. It is essential that policymakers and individuals take steps to mitigate the impact of inflation and promote financial security for all.
As a responsible and proactive individual, it’s crucial to stay informed about the economic environment and take steps to protect your financial well-being. Consider creating a budget, building an emergency fund, and exploring ways to increase your income or reduce expenses. By taking a thoughtful and intentional approach to your finances, you can weather the storm of inflation and maintain your financial security.
