Inflation has been a word we’ve heard often over the past couple of years, especially as prices continue to rise. But what exactly is inflation? Simply put, inflation is a general increase in the prices of goods and services in an economy over time. This means that as inflation rises, the purchasing power of money decreases—your dollar doesn’t stretch as far as it used to. For example, something that cost $1 last year might now cost $1.10. While some inflation is normal and even welcome in a growing economy, rapid or unstable inflation can create extreme challenges for individuals, families, and businesses trying to plan and budget for the future.
Millions of Americans will continue to be concerned about inflation in 2025. Although national inflation has slowed to roughly 2.4%, with core inflation at 2.8%, the consequences are still seen in everyday life. Rising expenses in critical areas such as food, housing, gas, and healthcare are putting further strain on household finances, especially for low- and middle-income households. Gas prices alone have risen over 20% in the past year, and food essentials like eggs and bread have risen over 15%. Rent and mortgage payments also remain high, and a lot of families are struggling to keep up with monthly payments. While wages have risen in some places, they have not risen fast enough to remain ahead of the cost of living. As a result, many Americans are being forced to cut back on discretionary spending, delay major life decisions like homeownership, or take on second jobs to survive.
These rising expenses are more than just a financial inconvenience—they’re reshaping the way people live. Parents are rethinking childcare and education costs, young adults are postponing family formation, and retirees are dipping into savings faster than expected. Consumer inflation expectations, according to recent surveys, have risen to 4.3%, indicating widespread anxiety about future price increases.
We asked teens what their thoughts were about inflation, and here are some of their responses:
“It’s ridiculous, I spent $12 just on eggs- it shouldn’t be this expensive!”
“I have to cut back on my spending and start to save more, because at this rate I’ll go broke.”
“I went to the store the other day and wanted to buy these really nice jeans, but then saw the price tag and was utterly shocked. They were nearly double the price I usually buy them.”
“Now that I’m going away for college, I started to look for places near my college, but I couldn’t find anything for a reasonable price. The numbers were simply way too high.”
“Honestly if it’s like this right now, I wonder how much worse it’s going to be in 10 years.”
Though the headline inflation rate can suggest stability, the day-to-day reality contradicts this. Inflation is not just about numbers—it is about the difficulty for a vast majority of Americans struggling to lead a secure and stable life. Short of increased wage growth and targeted relief, inflation will continue to erode financial well-being and heighten economic insecurity for millions of individuals across the country.