Half of Americans Struggle with Groceries and Gas Costs

More than half of Americans are finding it difficult to afford rising grocery and gas expenses, according to a new poll. An exclusive survey conducted by Harris Poll for The Guardian has unveiled a widespread cost of living crisis across the United States. A significant 95% of Americans polled believe the U.S. is experiencing an affordability crisis, with 57% also thinking the overall economy is getting worse.

This growing pessimism regarding the economy marks a notable increase from a previous poll conducted in February, where 46% believed the economy was worsening; this figure has now climbed to 57%. Concurrently, the percentage of those who believe the economy is improving has fallen from 28% to 16%. Despite stable employment figures and record-high stock markets, concerns about financial security among Americans have intensified, especially after the war in the Middle East led to a surge in gas prices. The struggle for affordability transcends political affiliations, with approximately half of Democrats, Republicans, and independents reporting difficulties in covering everyday necessities like gas and groceries.

This decline in consumer sentiment aligns with broader economic indicators. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose by 0.5% month-over-month in May and 4.2% over the last 12 months, marking the highest annual CPI print in three years. This increase was significantly influenced by the Iran War, which exerted upward pressure on prices for oil, gasoline, plastics, and fertilizers. The Federal Open Market Committee (FOMC) opted to maintain its target range for the federal funds rate at 3.50% – 3.75% at its June meeting, though markets are currently pricing in at least one 25 basis point rate increase in 202 year. The new Federal Reserve Chairman, Kevin Warsh, emphasized price stability, a stance interpreted by markets as mildly hawkish.

The current economic landscape needs to be viewed within a broader political and economic context, particularly ahead of the key midterm elections. Two-thirds of Americans, including 49% of Republicans, express little faith that the federal government will effectively address the ongoing cost-of-living crisis. The slow recovery in consumer confidence reflects the lingering effects of inflation, exacerbated by the energy shock from the Iran War. Furthermore, tariff uncertainty and a softening labor market are contributing headwinds for the U.S. economy in 2026.

Analysts and market observers suggest that this pessimistic consumer sentiment could exert downward pressure on household spending in the coming period. The challenges faced by consumers in affording basic necessities may temper overall economic growth. The Federal Reserve's commitment to combating inflation, its interest rate policies, and the trajectory of global energy prices are expected to play crucial roles in alleviating the financial burden on American households. The upcoming midterm elections will also be a significant factor shaping the government's approach to economic policies. As financial security concerns persist, the outlook for the broader economy remains uncertain.