Cost of Living Is the Biggest Challenge Americans Face

While inflation has long come down from its 2021/2022 highs, when it peaked at 9 percent, it is still slightly elevated at 2.7 percent. More importantly though, people are still struggling to cope with the lasting effects of the inflation crisis. According to a Statista Consumer Insights survey conducted in June and July 2025, 49 percent of U.S. adults said that the high cost of living was one of the biggest challenges they currently face – making it by far the most common answer.

It is a common misconception that prices come down when inflation cools, when in reality a period of high inflation leaves a legacy of high prices. According to the Bureau of Labor Statistics, U.S. consumer prices have increased 22.7 percent since January 2021, with some categories seeing even steeper price increases than that. Food prices have are up 25 percent, rents have increased almost 27 percent and transportation prices are up 28 percent. And yet, nominal wages have only grown 21.8 percent since January 2021, leaving many people worse off than they were almost five years ago.