Americans feel the squeeze as prices, childcare and health costs rise

Families are still absorbing higher costs where they hurt most: gas, utilities, groceries, housing, child care and medical bills. The U.S. Bureau of Labor Statistics said its Consumer Price Index, which measures the average change in prices paid by urban consumers for a market basket of goods and services, rose 0.6% in April 2026 and was up 3.8% from a year earlier. Energy prices climbed 3.8% in the month, shelter rose 0.6% and food rose 0.5%, with food at home up 0.7% and food away from home up 0.2%.

The inflation picture in 2025 showed the same pressure, even as price growth eased from earlier peaks. The Consumer Price Index for all items rose 2.7% from December 2024 to December 2025, while food prices increased 3.1% over the year. Food at home rose 2.4% and food away from home rose 4.1%, a sign that households were being squeezed both at the grocery store and when they ate out. The BLS also publishes average price data for selected food items, utilities and automotive fuels, underscoring how quickly everyday bills can move even when broader inflation appears to cool.

The Federal Reserve’s 2025 Survey of Household Economics and Decisionmaking, based on nearly 13,000 adults surveyed in October 2025, found that price increases remained the most common financial concern. The report also showed that financial well-being was lower for young adults, low-income families and Black adults, groups that often have the least room to absorb higher costs. That strain is showing up in household tradeoffs: stretching budgets, cutting back and substituting cheaper goods and services when the bills keep coming.

Child care remains one of the hardest expenses to fit into a family budget. The Fed said paid child care can cost more than half as much as a family’s housing payment, and that mothers of children under age 13 were much more likely than fathers to be primary caretakers. Many mothers also said child care responsibilities limited their work, linking the cost of care directly to labor force choices and family income. For parents, the math is increasingly unforgiving: paying for work-related child care can make it harder to afford housing, and paying for housing can leave even less for care.

Health coverage adds another layer of strain. KFF found in 2026 that the average Affordable Care Act Marketplace deductible jumped 37%, from $2,759 in 2025 to $3,786 in 2026, after enhanced premium tax credits expired. In the same survey, 61% of Marketplace enrollees said deductibles and out-of-pocket costs were difficult to afford, and 51% said monthly premiums were difficult to afford. Together, the numbers show a country where inflation may have slowed, but the bills that shape daily life have not stopped climbing.