Inflation Remains the Leading Financial Concern for Americans, Though Fewer Cite It as Top Issue
By Jeffrey M. Jones, Gallup News – April 30, 2025
WASHINGTON, D.C. — Inflation continues to dominate as the top financial concern for American families, despite a notable decline in the number of individuals citing it as their most pressing economic problem. According to Gallup’s latest Economy and Personal Finance survey conducted from April 1-14, 29% of Americans say inflation or the high cost of living is the foremost financial issue affecting their household today. This figure marks a significant drop from 41% recorded last year and 35% in 2023, yet it remains substantially higher than levels prior to the inflation surge that began in 2021. ### Inflation Still Tops Consumer Financial Stressors
Inflation has held the number one spot in Gallup’s annual measure of consumers’ financial stressors since 2022. Despite the recent downturn in concern, it remains a leading challenge for Americans across all income groups. The survey reveals that housing costs and lack of money (or low wages) trail as the next most commonly identified financial challenges, each named by 12% of U.S. adults. Healthcare costs (7%), stock investments (6%), taxes (5%), and debt (5%) also featured prominently among respondents’ concerns.
While inflation is still the top issue by a wide margin, the 12-percentage-point reduction in mentions is the largest year-over-year change observed since last year. Concurrently, the survey shows a five-point increase in the percentage of people citing stock investments and lack of money as major financial problems.
Americans’ Financial Outlook Remains Mixed
When asked to rate their overall financial situation, 44% of Americans described their finances as excellent or good—a statistic unchanged from the previous year but significantly down from 57% in early 2021 before inflation sharply increased. Conversely, 37% rated their situation as “only fair,” and 18% as poor.
A record 53% of Americans report that their financial situation is worsening, compared to 38% who say it is improving. This pessimism coincides with recent stock market volatility following tariff announcements in early April, which briefly unsettled markets before partial tariff suspensions tempered losses.
Inflation Concerns Span All Income Levels, with Middle-Income Americans Most Affected
Inflation ranks as the top financial problem among Americans of all income brackets. However, middle-income households are more likely to cite inflation (38%) compared to their lower-income (27%) and upper-income (24%) counterparts. Housing costs also rank among the top financial challenges for all groups, while lack of money or low wages is a more significant concern for lower-income Americans.
Additional findings show that stock market investments and retirement savings concerns primarily affect upper-income individuals, making these issues less prevalent among lower- and middle-income groups.
Notably, the decline in inflation-related concern has been most pronounced among upper-income Americans, with mentions dropping 17 percentage points over the past year. Middle-income individuals saw a nine-point drop, while lower-income respondents’ concerns fell by six points.
Retirement, Medical Costs, and Maintaining Standard of Living Are Key Worries
Beyond immediate financial problems, the survey also explored long-term financial worries. The biggest concerns include:
- Not having enough money for retirement (59%)
- Paying medical costs for a serious illness or accident (59%)
- Maintaining their standard of living (57%)
- Obtaining a satisfactory return on investments (53%)
In contrast, fewer Americans worry about affording normal healthcare costs (45%), paying monthly bills (42%), or covering rent or mortgage payments (38%). One-third expressed concern over college costs for their children, with worry rising to 64% among parents with children under 18. Making minimum credit card payments ranked as a relatively low concern.
Lower-income Americans consistently expressed higher levels of worry across these financial challenges than their middle- and upper-income peers. The largest disparity is in concern over paying normal monthly bills, with 71% of lower-income respondents expressing worry compared to 24% of those with upper incomes. Worry about investment returns, however, remains roughly consistent across all income groups.
Trends in Financial Worries Since the Pandemic
Many financial concerns have intensified since 2019, prior to the COVID-19 pandemic, and further since the inflation spike beginning in 2021. However, over the past two years—during a period of moderated inflation—the levels of worry about most issues have stabilized. The exception is concern over insufficient retirement funds, which has eased somewhat, potentially reflecting recent gains in stock market values.
Gallup’s survey data underscores that while inflation anxiety is easing, it remains a significant financial burden for American households. Alongside inflation, issues such as housing costs, healthcare expenses, and retirement planning continue to exert substantial pressure on personal finances nationwide.
For more detailed findings and insights from Gallup’s Economy and Personal Finance survey, visit Gallup News.
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