High inflation made finances worse for 65% of Americans in 2023

Inflation may have slowed last year, but it continued to deal heavy blows — some devastating — on Americans’ livelihoods: Nearly two-thirds of US households were worse off because of it, and roughly 1 in 6 adults couldn’t pay all their monthly bills, new Federal Reserve data shows.

Inflation may have slowed last year, but it continued to deal heavy blows — some devastating — on Americans’ livelihoods: Nearly two-thirds of US adults were worse off because of it, and roughly 1 in 6 couldn’t pay all their monthly bills, new Federal Reserve data shows. The Fed on Tuesday released its Economic Well-Being of US Households report for 2023, examining the financial lives of US adults and their families. The report found that 72% of adults surveyed said they were “doing okay” financially, notching a similar reading to 2022 but landing well below the high of 78% hit in 2021. Inflation made the financial lives “worse” for 65% of US households, according to the report. Among those, 19% said it was “much worse.” The findings were drawn from the Fed’s 11th annual Survey of Household Economics and Decisionmaking, which looks at American’s economic health across a variety of areas, including employment, income, banking and credit, housing, retirement planning, student loans, childcare and even Buy Now, Pay Later usage. But even in a time when broad economic data highlights a remarkably resilient economy — job growth has been stellar and pay gains have been strong, which have helped fuel spending and keep the economy rolling — not everyone feels that upbeat. Three-plus years of high inflation have taken their toll on Americans’ wallets and their psyches. That was especially true in 2022, when US inflation hit 9.1%, its highest annual rate in more than 40 years.