Higher prices still top financial concern for Americans: Fed

ISTANBUL

Higher prices are still the top financial concern for most Americans despite the moderating pace of inflation, according to a report Tuesday by the US Federal Reserve.

"Sixty-five percent of adults said that changes in the prices they paid compared with the prior year had made their financial situation worse, including 19 percent who said price changes made their financial situation much worse," according to the Federal Reserve Board Economic Well-Being of US Households 2023 report.

Some groups have continued to experience financial stress at higher rates than others, especially low-income adults are more likely to face material hardships, it said.

Such difficulties include not paying all bills in full, sometimes or often not having enough to eat, skipping medical care because of cost, it added, noting that 17% of adults said they did not pay all their bills in full in the month prior to the survey.

Other hardships include homeowners' insurance, caring for aging or disabled adults and childcare. The latter was reported as a significant cost in family budgets, according to the Fed.

"Parents using paid childcare typically spent 50 to 70 percent as much per month on childcare as they did on their housing payment, which is most people's single largest monthly expense," it added.