Affordability has emerged as a significant economic challenge for Americans across various income brackets, according to research conducted by the McKinsey Institute for Economic Mobility in partnership with the W.K. Kellogg Foundation. A survey of 30,000 Americans revealed that food and grocery prices rank as the leading cost concern for respondents, cited by 90% of those polled as a primary worry—surpassing concerns about housing and healthcare expenses.
Recent inflation data indicates that food prices have continued to climb. Consumer prices pulled back during June, though food costs edged higher, with year-over-year gains reaching 3% according to the latest consumer price index figures. Grocery store prices, measured as food at home, also posted increases compared to the prior year.
Financial strain related to food costs has prompted many households to rely on credit and savings. An Urban Institute analysis released in mid-July, based on a December survey of more than 10,000 adults, found that approximately 35% of adults paid for groceries with credit cards and settled their bills in full monthly. An additional 20% used credit cards but carried revolving balances with minimum payments, while 8.7% struggled to make minimum monthly payments. Buy now, pay later services have also gained traction for grocery purchases, with nearly 1 in 10 adults using installment payment options, and roughly 35% of BNPL users missing payments.
Experts note that food-at-home prices have risen approximately 25% over the past five years, creating cumulative pressure on household budgets. According to Kassandra Martinchek, a public policy expert at the Urban Institute, this sustained pressure leads to larger debt burdens that are harder to manage. Although low- and moderate-income households experienced more acute repayment challenges, the research indicates that even some higher-income households struggled with debt repayment, suggesting the affordability challenge extends across broader segments of the consumer population.
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