Inflation Hangover: Middle-Income Americans Pessimistic About Financial Prospects

Florida Gubernatorial Candidate Byron Donalds Discusses Affordability Crisis

Affordability Crisis and Middle-Income Americans

Recent analysis reveals that middle-income Americans, grappling with an economic slump due to the consistent inflation in recent years, are increasingly pessimistic about their financial future.

Findings from Primerica’s Report

According to a report published by Primerica, just 21% of middle-income Americans are confident about their financial well-being in the coming year, as of the third quarter of 2025. As many as 34% predict a downturn in their financial status, while 33% foresee no changes.

This sentiment marks a significant shift from the data collected in the third quarter of 2020. Then, notably more, 33% of middle-income Americans believed they would be better off financially in the following year, barely 17% anticipated worsening financial situation, and 40% expected their circumstances to stay the same.

The report emphasizes that the inflation hangover tightens budgets and erodes the financial foundation that families strive to build. Essential cost increases, even minor ones, can compel households to make challenging decisions, including delving into savings, accumulating credit card debt, or postponing retirement investments.

Impacts of Inflation

This Fox News poll reveals voters expressing concerns over soaring inflation.

Primerica’s study highlighted that the share of middle-income families rating their personal finances as “poor” or “not so good” increased from 32.2% in 2021’s first quarter to a peak of 55% in the third quarter of 2024. As of the third quarter of 2025, it stands at 45.5%.

The report also underscores that the number of survey respondents who manage to pay off their credit card debts fully each month has dwindled considerably from about 47% in the first quarter of 2021 to 29% in the third quarter of 2025. This decline persists despite a slowdown in inflation from 2022’s highs.

Primerica’s Household Budget Index data shows that the costs of necessities such as food, gas, and utilities have risen by 32.7% since January 2021. This surge significantly outpaces the 23.5% increase in middle-income wages during the same period.

As families struggle to overcome financial challenges by deferring significant purchases or investments, dipping into savings, or adding to credit card debts, their long-term financial goals can be severely affected.

Surveyed Concerns of Middle-Income Households

The Primerica report also surveyed middle-income households about their current financial stressors. Inflation emerged as a concern for 55% of the respondents, while 47% expressed worries about covering emergency expenses. Nearly half, 46%, indicated stress over debt and having enough money for daily life, while 42% pointed to monthly bills. A small group, just 12%, reported no current financial stress.

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