Americans remain pessimistic about prices, with 51% expecting inflation will accelerate this year, compared with only a quarter who expect it to slow, according to a poll conducted for Northwestern Mutual by Harris.
Inflation was the dominant financial concern in the U.S., at 65% of respondents, according to the online survey of 4,626 adults conducted in early January. People are particularly concerned about the elevated costs of childcare, housing, groceries, utilities and gas — although the price of the last of these has actually declined.
“Inflation is sticky at the individual level — it remains top of mind for people and they get reminded of it often in their daily lives,” John Roberts, the insurer’s top field officer said in a release.
People are also pessimistic about the “American Dream,” with fewer than half saying it’s attainable for most Americans, although 68% believe it’s something they can achieve for themselves.
Adding to the concern: A majority of those surveyed said that their incomes are growing more slowly than inflation, with fewer than 20% of people in all age brackets saying their personal earnings are outpacing prices.
A majority of people surveyed said that owning a home wasn’t an achievable goal. Gen Z was slightly more optimistic with 49% seeing homeownership as something they’ll never be able to do — but 40% plan to increase discretionary spending this year, the most of any age bracket.
In a sign of aging, millennials are now more likely to cite medical bills as their largest source of debt (11%) than student loans (10%). Credit card and car loans were the largest contributors to debt, as they were for Americans of all ages.
Americans’ average personal debt exclusive of mortgages declined this year to $21,500, down from $22,713 in 2024 and a 19% decrease from 2020, with 64% of those surveyed saying they were prioritizing paying down loans, compared with 36% who said that building savings were their focus.