Overview
- Nearly 90% of consumers report changing spending due to rising prices, including 84% of households earning $100,000 or more, with groceries cited as the top pressure point, TD Bank found.
- The Consumer Price Index is running about 2.9% year over year, with August component gains in shelter (0.4% monthly), food and apparel (0.5%), energy (0.7%) and used vehicles (1.0%), according to the BLS.
- Consumer spending remains elevated, with the BEA’s PCE price index up 2.7% year over year in August 2025, even as many shoppers cut nonessentials and lean on discounts.
- Advisers highlight practical defenses such as high-yield savings accounts offering around 4% or more versus a 0.62% average rate, plus laddered CDs, Treasury bills, TIPS and dividend-growth stocks.
- Guidance also emphasizes trimming recurring charges, negotiating longer leases, pursuing fixed-rate refinancing and upskilling, with some analysts noting dollar weakness and new tariffs as ongoing inflation risks.