Rising Inflation Pressures American Families: Why Many Feel Financially Squeezed

For Kasey McBlais, a 42-year-old single mom from Maine, household expenses keep climbing. With two kids to care for, she finds it tough to make ends meet. “It’s paycheck to paycheck,” she says, reflecting on her struggles.

Her costs have surged. Just this year, cleaning her chimney hit $500, a steep rise from $200 when she bought her house in 2019. Grocery bills are also higher, forcing her to stretch meals and rely on leftovers. “I don’t think prices will go back to what they were. They will just settle,” she adds.

Kasey’s challenges come amid ongoing inflation, which is frustrating many Americans. A recent CBS News poll showed that two-thirds of people believe prices are still going up and almost everyone fears it won’t stop anytime soon.

Experts warn that inflation is still above the Federal Reserve’s target of 2%. In August, the Consumer Price Index (CPI) revealed a 2.9% increase, up from 2.7% in July. Some economists point to previous tariff policies as part of the issue. “Tariffs raise costs, and that inevitably fuels inflation,” says Erasmus Kersting, an economics professor at Villanova University.

Though inflation isn’t as steep as during the pandemic, it’s becoming a rising worry again. This month, the Federal Reserve faces a tough choice about interest rates. Notably, President Trump recently tweeted about inflation, insisting there is “no inflation” and calling for the Fed to lower rates dramatically.

Interestingly, when Trump promised to end the “inflation nightmare” in July 2024, the CPI was already at 2.9%. “He wants people to overlook inflation now. Before, it helped him politically,” Kersting remarks.

On the other hand, the Federal Reserve has kept interest rates steady this year while monitoring the labor market. Reports indicate a slowdown, which may urge the Fed to cut rates to boost hiring. Currently, there’s a 90% chance of a modest 0.25% cut, according to the CME FedWatch tool.

Lowering rates could help consumers by reducing borrowing costs. However, many families like Kasey are still grappling with high grocery bills and household expenses. “For many, the budget strain hasn’t eased, even with some inflation slowdowns,” notes Stephen Kates, a financial planner. He describes current inflation worries as a “slow, painful walk down memory lane.”

With economic pressures bearing down on everyday Americans, the conversation about inflation continues, highlighting the need for a balanced approach to economic policy that considers both growth and stability.

For more detailed economic insights, check out CBS MoneyWatch.

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Economy, Inflation