Most Americans expect to face higher prices for at least four years

Despite a slower pace of inflation in the most recent CPI print, most Americans are expecting to face higher prices for some time to come.

New research shows that financial optimism has fallen in 2025 from a year ago, with only 28% feeling hopeful now compared to 68% in 2024 and 63% think that inflation will worsen their financial situation as everyday essentials become less affordable and 54% of Americans report increased stress due to debt and 20% feel overwhelmed.

The report from financial wellness firm Nudge reveals that 46% fear rising energy costs and while 57% worry about food prices. And many feel the government’s policies will not ease their financial strain significantly.

Almost four in ten are anxious about financial matters and concerned that they may not be able to maintain their standard of living. Many link their financial stress to depression, mental health issues, and high blood pressure. Three in ten are kept awake at night by money worries.

But on a positive note, 83% of respondents say they are actively trying to improve their financial literacy or skills and those who show stronger financial literacy levels are typically less stressed about their finances than those who do not.

The US survey is part of a wider global one and reveals that:

• Americans are the most likely to feel their wellbeing decline due to financial cutbacks, impacting overall life satisfaction.
• Americans feel the least confident in understanding and managing potential tax changes (23% US vs 30% global average), which could further strain household budgets.
• Americans are the most likely to experience relationship strain due to financial stress (21% US vs 18% global average), highlighting the broader social implications of economic anxiety.

Jeff Miller, Vice President US at Nudge and Certified Financial Education Instructor, said that the report shows that economic uncertainty is hitting Americans hard.

“Many are struggling to keep up with rising costs and financial obligations. Financial literacy is more crucial than ever, helping people navigate the effects of trade tariffs, healthcare funding cuts, and increased interest rates. Without the right financial education, many individuals may find themselves unable to make informed decisions that protect their financial wellbeing,” he said.