Inflation Remains Top U.S. Financial Concern, Though Fewer Americans Cite It
WASHINGTON, D.C. — Inflation and the high cost of living continue to dominate as the principal financial concern for Americans, although the proportion citing it has declined significantly over the past year. According to Gallup’s Economy and Personal Finance survey conducted from April 1 to April 14, 2025, 29% of U.S. adults now identify inflation as the most important financial problem facing their family, down from 41% in 2024 and 35% in 2023. Despite this notable decrease, the current level remains substantially higher than before inflation began its steep rise in 2021. Inflation has held the top spot on Gallup’s annual measure of consumer financial stressors every year since 2022. ### Other Financial Concerns
Following inflation, housing costs and a lack of money emerged as the next most commonly mentioned financial problems, each cited by 12% of respondents. Healthcare costs were identified by 7%, stock investments by 6%, taxes and debt by 5% each. While inflation remains the dominant challenge, the survey revealed the largest year-over-year drop was in inflation mentions, decreasing by 12 percentage points. Meanwhile, there were increases in concerns regarding stock investments and lack of money, which both rose by about five points.
Financial Well-Being Ratings Stable, Yet Worries Persist
Gallup’s poll shows that 44% of Americans rate their overall financial situation as excellent or good, 37% as only fair, and 18% as poor. These figures have remained consistent since last year but are markedly worse than early 2021, when 57% rated their finances positively before the inflation surge.
A record-high 53% of Americans currently report that their financial situation is worsening, while 38% say it’s improving. This survey period coincided with volatility in stock markets following the Trump administration’s introduction of sweeping tariffs on most U.S. trading partners in early April, which initially caused market declines before tapering off when many tariffs were temporarily suspended mid-month.
Inflation Concerns Across Income Groups
Inflation ranks as the leading financial concern across all income brackets but is particularly pronounced among middle-income Americans, 38% of whom named it as their top issue. Meanwhile, 27% of lower-income and 24% of upper-income respondents identified inflation as their primary problem.
Housing costs also loom large across income levels, though for lower-income Americans, a lack of money or low wages surpasses housing as a financial challenge. In contrast, stock market investments and retirement savings are key concerns predominantly for upper-income respondents.
Mentions of inflation have dropped among all income groups since last year, with the steepest decline seen in the upper-income segment — down 17 percentage points from 2024. Middle-income Americans saw a nine-point drop, and lower-income Americans a six-point decrease.
Worries About Retirement, Healthcare, and Living Standards
The survey also explored Americans’ worries about various financial challenges. The top worries include not having enough money for retirement (59%), affording medical costs for serious illnesses or accidents (59%), and maintaining their standard of living (57%). Additionally, 53% express concern over receiving a poor return on their investments.
Less worrisome challenges include affording routine healthcare costs (45%), paying regular monthly bills (42%), and managing rent, mortgage, or other housing expenses (38%). About one-third of Americans worry about the cost of a child’s college education, though this concern rises sharply to 64% among adults with children under 18. Making minimum credit card payments ranks as a lower concern among respondents.
As expected, financial worries are more pronounced among lower-income Americans. For example, 71% worry about paying normal monthly bills compared to just 24% of upper-income Americans. Interestingly, concerns about investment returns are fairly consistent across all income groups.
Increasing Concerns Over Time
Compared to data collected in 2019 (pre-COVID) and 2021 (before the inflation surge), more Americans now express concern about a range of financial challenges. However, sentiment has stabilized somewhat within the last two years as inflation has eased. One exception is the worry about having adequate retirement funds, which has lessened slightly, possibly reflecting recent gains in stock market values.
Gallup’s annual Economy and Personal Finance survey continues to provide insight into the shifting financial anxieties of Americans amidst an evolving economic landscape, highlighting both persistent and changing concerns as the nation navigates inflationary pressures and other fiscal challenges.
Report compiled by Jeffrey M. Jones for Gallup News, April 30, 2025.