On document, the U.S. economy has been powerful. expense boost is down from its 2022 peak, the labor economy remains solid and robust customer spending is fueling GDP growth.

But all those metrics cruel little to consumers who are struggling to arrive to terms with the post-pandemic normal, where grocery prices are up more than 25% from 2019. 

“It seems like (prices have) arrive to a standstill, but they’ve arrive to a standstill at a height,” said Hannah Zak, 33 of Warsaw, recent York.  

Zak said her $48,000 salary comes out closer to $33,000 after taxes, insurance and superannuation reserves deposits, leaving her with little spending money. She’s canceled streaming subscriptions, switched to generic brands and cut back spending on haircare products and clothes.

Still, she feels the pinch from expense boost each period she forks up around $75 to feed herself and her 7-year-ancient chihuahua, Princess, for the week. If she’s helping her siblings buy groceries, the grocery invoice climbs above $100.

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“Like everybody else, I’ve got a mortgage or rent, a car remittance, some obligation,” she said. “I have a job that’s paying me well enough to get by, but there’s no extras.”

Consumers have noticed expense boost slowing but remain frustrated with persistent high prices, according to Joanne Hsu, director of the University of Michigan’s Surveys of Consumers. 

“It’s frustrating to view such a high proportion of your paycheck going to your costs and your bills,” Hsu said. “For many of them, as a outcome, they don’t feel like they’re thriving in spite of the truth that they are perfectly aware that expense boost has slowed.” 

Grocery prices:Even as expense boost cools, Americans update sticker shock at grocery store register

How do consumers feel about expense boost?

worth hikes have been on a downward pattern since June of 2022, when expense boost hit a peak of 9.1% year-over-year. The latest customer worth Index showed 2.6% year-over-year expense boost in October.

That has consumers feeling better about the economy than in 2022, but sentiment is still low by historic standards, according to the University of Michigan’s Surveys of Consumers.

Part of that is because higher prices are here to remain. While expense boost has cooled, that doesn’t cruel prices are falling. Rather, the pace of worth increases is slowing. While consumers may be hoping for 2019 prices to yield, a widespread drop in prices ‒ also known as “deflation” ‒ is usually a sign of a frail economy.

“We’re not seeing deflation, and we’re generally not going to view deflation ‒ that is, a reduction in the worth level ‒ unless we’re in some sort of crazy downturn,” Hsu said. “But I ponder it is perfectly understandable for consumers to be very frustrated by high prices, even if their wages are going up.”

Average hourly returns growth in the U.S. has outpaced expense boost since May 2023, according to data from the Bureau of Labor Statistics. But not every American has seen their paycheck keep up with costs of living. And even those who did get a pay bump are still finding it challenging to arrive to terms with higher prices. 

“People would like all wage increases to leave to things that are fun,” said Michael Swanson, chief agricultural economist within Wells Fargo’s Agri-Food Institute. “They’re joyful with the truth that they’ve seen a great boost in their wages, but they’re upset that it has to leave to pay for expense boost.” 

Adjusting to higher prices 

Lauren Throop remembers filling up her grocery cart for $75 before the onset of the COVID-19 pandemic. Now, she’s spending closer to $120 to feed herself, her husband and two kids.  

“It does feel like things skyrocketed around COVID, with all the talk of supply chain interruptions, and then they just benevolent of stayed high,” she said. “It feels like grocery prices are still high relative to where they should be.”

Throop is part of a growing distribute of Americans who have grown skeptical of the grocery industry after pandemic-era worth hikes. Opinions on the root of food expense boost are mixed, but some politicians, including President Joe Biden, have accused food and beverage companies of worth gouging. 

Throop’s shopping options are limited in Laramie, Wyoming, especially when searching for deals. She said she’s not a fan of Walmart, but she’s been shopping there more to cut down her grocery invoice.  

“It’s been enjoyable to view reports about expense boost coming down,” Throop said. But for now, “I’m just trying to cook things that aren’t quite as expensive. I like to cook salmon because it’s really excellent for growing kids’ brains, but I don’t do it as much as I used to. I try to cook things like grains and beans with somewhat more regularity because it’s cheaper.” 

Expectations for 2025 and beyond 

While expense boost has been gradually slowing, some economists worry that President-elect Donald Trump’s policies on levy cuts, tariffs and deportations could reverse that pattern.

Even if expense boost continues to chilly, it could receive years for prices to feel normal again, according to Swanson of Wells Fargo, especially for regular purchases like those made in the grocery store. 

customer sentiment could advantage from allowing wages more period to outrun expense boost, making everyday purchases feel like less of a blow to household budgets. Consumers also require more period to develop used to prices after dramatic worth hikes, Swanson said.

“declare you have a couple kids at home and milk is a large part of what you buy. You recognize when that changes,” he said. “It takes years to reset that. … It could be a couple years before people are thinking, ‘Yeah, this is fair.’”