The Digester

Workers and retirees across the US say everyday costs are rising and pushing households into debt, while the White House points to cooling inflation and policy gains as proof the economy is improving.

Workers across the US report higher costs for food, housing and utilities even as the White House says inflation is falling.
Food prices were 2.9% higher in January year on year and are forecast to rise about 3.1% over the next year.
Utility prices rose more than 6% in January 2026 versus a year earlier and food insecurity reached 16% in November, up from 12.7% in January 2025.
Total household debt reached $18.8 trillion in Q4 2025, up 4% year to date, and credit card debt hit a record $1.28 trillion at the end of 2025.
Real wages for the bottom 10% fell 0.3% in 2025, the federal minimum wage has remained $7.25 since 2009, and high-end wages have grown roughly twice as fast as low and middle wages since 1979.
Policy changes including new tariffs that added an estimated $1,700 per household from February 2025 to January 2026, cuts of over $1 trillion to Medicaid and major reductions to Medicare and SNAP, and the end of some ACA subsidies are raising costs for many families.
The White House says inflation is cooling and credits tax cuts, tariffs and deregulation for wage and investment growth while workers interviewed report lost hours, higher bills and tighter budgets.

Americans report rising living costs while White House says inflation is cooling

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