Rising Costs of Food, Gas and Utilities Squeeze U.S. Households
LOS ANGELES — Americans are facing growing financial pressure as the cost of groceries, gasoline and utilities continues to climb, driven by tariffs and higher global energy prices tied to ongoing geopolitical tensions.
Economists say the combination is pushing up everyday expenses and threatening to slow economic growth, just as many households had begun to regain some financial stability.
“I feel betrayed,” said Katie Peyrey, a 66-year-old janitorial worker and caregiver in Burbank, California.
Peyrey, who supports herself and her autistic grandson on a minimum-wage income, said her monthly expenses — including rent, utilities, groceries, gas, clothing, taxes and healthcare — have risen beyond what she can afford.
“Before, I was barely covering about $2,300 a month with my income of $2,400,” she said. “But now my expenses have shot up to over $2,500 a month and I can’t make ends meet anymore.”
She said she has already borrowed from family and friends, many of whom are facing similar financial strain, and worries about what lies ahead.
Others report similar challenges. Christian Devito, a 34-year-old health and safety worker at a grocery store in Los Angeles, said his monthly bills have increased by at least 15 percent in recent months.
“LA is all spread out, so commuting to work jumped from $50 a week to over $70. And my food and utility bills shot up, too. That’s killing me,” he said. “First, I just cut down on going to movies and getting haircuts, but now I have to cut back on food.”
Recent government data underscores those concerns. According to the U.S. Bureau of Labor Statistics, energy prices rose 10.9 percent month over month in March, driven by a 21.2 percent surge in gasoline prices.
Rising costs are particularly significant because consumer spending accounts for roughly two-thirds of the U.S. economy. The Federal Reserve has indicated it may keep interest rates elevated if inflation pressures persist, adding further strain through higher borrowing costs on credit cards, auto loans and other expenses.
For many households, the impact is immediate and cumulative. Gasoline price spikes hit commuters quickly, utility bills increase with a lag, and food inflation — even when moderate overall — tends to affect essential items most.
“I used to feel like $200 at Costco could fill up your entire shopping cart, but now it doesn’t even cover the bottom. Everything is getting more expensive,” said Allen Wang, speaking at a Costco store in Azusa, California. “Even a box of cat litter has gone up by $2 to $3 over the last 12 months.”
Tariffs are also contributing to higher prices. A Federal Reserve analysis found that tariffs implemented through late 2025 increased core goods prices by 3.1 percent through early 2026, with costs largely passed on to consumers.
Economists at the Peterson Institute for International Economics have warned that broad tariffs can effectively act as a tax on households, estimating they could cost the average U.S. household more than $1,200 annually.
At the same time, higher energy costs linked to conflict with Iran are pushing up transportation and production expenses, affecting prices across a wide range of goods.
Economists say the outlook will depend on how long energy markets remain volatile and whether tariff policies expand or ease. The next consumer price index report is expected to provide further insight into whether inflation pressures are broadening.
“I hope there is good news soon,” Peyrey said. “We can’t survive another year like this one.” (Source: IANS)
