US Households Grapple With 29% Grocery Surge, As Dollar Loses 25% of Value: 'Affordability Is Still Getting Worse,' Says Market Expert

Core Insights - American households are experiencing increasing financial strain due to rising costs of everyday essentials, which are outpacing wage growth and eroding purchasing power [1] - The affordability crisis is worsening, with basic necessities becoming more unaffordable since February 2020, including a 29% increase in grocery prices and a 30% rise in overall food prices [2][4] - The cost of food away from home has surged by 33%, and transportation services have increased by 36%, leaving families with limited budget flexibility [3] - The U.S. Dollar's purchasing power has decreased by nearly 25%, while wage growth has significantly slowed, contributing to the affordability crisis [4] - The Personal Consumption Expenditures price index rose by 2.7% year-over-year in August, exceeding the Federal Reserve's 2% inflation target [4] - Economists have noted that 72% of the Consumer Price Index components are rising above the Fed's inflation target, largely due to trade and tariff policies [5] - The Federal Reserve's recent interest rate cut of 25 basis points may exacerbate inflationary pressures, with further cuts anticipated [6]