Inflation Remains the Top Financial Concern in the U.S., Though Fewer Americans Cite It
Washington, D.C., April 30, 2025 — Inflation and the high cost of living continue to be the foremost financial challenges confronting American families, according to the latest Gallup poll. However, fewer Americans now cite inflation as their primary financial problem compared to previous years, indicating a gradual easing of concern — though inflation remains a significant issue nonetheless.
Decline in Inflation Concerns, But Still Tops List
The Gallup Economy and Personal Finance survey, conducted from April 1 to 14, 2025, found that 29% of Americans identify inflation or high living costs as the most important financial issue facing their family today. This is a notable decline from 41% in 2024 and 35% in 2023, yet it still surpasses the levels reported before inflation surged in 2021. This decline marks the largest annual drop in inflation mentions since the period of heightened inflation began. Despite this decrease, inflation retains the top spot on Gallup’s annual ranking of consumer financial stressors, a position it has held since 2022. Following inflation in concern are housing costs and not having enough money, each named by 12% of U.S. adults. Other financial problems cited by at least 5% of respondents include healthcare costs (7%), stock investments (6%), taxes (5%), and debt (5%).
Financial Situation: Little Change but Not Fully Recovered
When asked to assess their overall financial situation, 44% of Americans rate it as excellent or good, 37% as only fair, and 18% as poor. These figures are largely unchanged from last year, yet they remain significantly lower than the 57% who rated their financial situation positively in early 2021 before inflation became a major concern.
In addition, a record-high 53% of Americans say their financial situation is getting worse, compared to 38% who report improvements.
Impact of Recent Economic Events
The survey period coincided with a phase of stock market turbulence triggered by the Trump administration’s announcement on April 2, 2025, of sweeping new tariffs on most U.S. trade partners. This caused a sharp market decline initially, though stock values rebounded somewhat after a 90-day pause of many tariffs was announced on April 9. ### Inflation Concerns Across Income Groups
Inflation is the top financial concern across all income levels but is most pronounced among middle-income Americans, with 38% naming it as their leading issue. This contrasts with 27% of lower-income and 24% of upper-income Americans who cite inflation. Housing costs rank high among all groups, though lower-income Americans are more likely to point to a lack of money or low wages as their primary concern.
Stock market investments and retirement savings feature prominently as top financial worries for upper-income Americans but are less frequently mentioned by those with lower or middle incomes.
The recent drop in inflation concerns is also uneven across income groups: upper-income Americans show the largest decrease—24% this year, down 17 points from 2024—compared to smaller declines among middle- and lower-income groups.
Worry About Retirement and Medical Costs Prevails
Beyond immediate financial issues, Americans reveal deep concern about their long-term financial security. A majority worry about having enough money for retirement (59%) and for medical costs associated with serious illnesses or accidents (59%). Maintaining their standard of living also concerns 57% of respondents, while 53% worry about not getting a good return on investments.
In contrast, fewer Americans worry about paying for normal healthcare (45%), monthly bills (42%), or housing costs such as rent or mortgage payments (38%). Around one-third of adults express worry about affording a child’s college education—this figure rises dramatically to 64% among those with children under 18. Credit card minimum payments rank low on the worry scale.
Income Level Influences Financial Worries
Consistent with expectations, lower-income Americans exhibit greater concern about nearly all financial challenges compared to their middle- and upper-income counterparts. For example, 71% of lower-income respondents worry about paying normal monthly bills versus just 24% of upper-income respondents. Interestingly, concerns about investment returns are relatively consistent regardless of income.
Trends Over Time
Comparing current worries with data from 2019 (pre-pandemic) and 2021 (before the inflation surge), worries about most financial difficulties have increased. However, in the past two years, as inflation pressures have moderated somewhat, the level of worry has largely stabilized.
One exception is concern about having enough for retirement, which has declined slightly in recent years. This easing may be linked to recent gains in stock market values and a recovering investment climate.
About the Survey:
The Gallup Economy and Personal Finance poll was conducted April 1-14, 2025. The survey sampled a representative cross-section of U.S. adults to gather insights into their perceptions and concerns about personal financial challenges amid ongoing economic fluctuations.
For more detailed insights and to access Gallup’s ongoing research on U.S. financial attitudes, visit Gallup’s website.