Recent discussions among analysts, including insights from Cheryl Cassone and Scott Radner, highlight the significant economic data of the week, like June’s Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales. Ladner points out that earnings from major banks can provide valuable clues about consumer behavior.
According to a new study, more American families are exceeding their financial limits when grocery shopping, often relying on credit card debt just to afford basic food items.
The Urban Institute’s report shows that over 25% of working-age Americans are feeling the pressure to spend more on groceries, reflecting a cumulative 32% increase in food prices over the last five years. Many are falling into credit card debt to cover these rising costs.
“Groceries are among the largest expenses for households. In the last five years, food prices have risen significantly,” the report states, adding that families are facing ongoing increases in grocery costs, making food affordability a pressing issue.
The findings also indicate a rise in the number of working-age adults using credit cards for grocery purchases without making minimum payments, signaling increased economic hardship for households.
Despite criticisms from the White House and conflicting reports from gas stations about persistent prices, some areas are seeing price reductions. A recent drop in gas prices has offered temporary relief from inflation; however, experts like Conference Board Chief Economist Dana M. Peterson suggest that issues from corporate supply chain challenges and global economic factors will continue to keep prices high for the foreseeable future. Peterson noted that meeting the Federal Reserve’s 2% inflation target may not happen until at least 2028.
Coming up soon, June’s CPI data will be released alongside April’s inflation details. The most recent personal consumption expenditure (PCE) index showed a 0.4% increase from the prior month and a 3.8% rise compared to the previous year.
The Urban Institute’s research lays bare the current financial pressure, revealing that 63.2% of working-age individuals aged 18 to 64 charged groceries to credit cards last year, with more than a quarter struggling to repay them.
Moreover, those missing the minimum credit card payment for grocery purchases rose from 7.1% in 2023 to 8.7% in 2025.
About 8.9% of adults turned to “buy now, pay later” schemes to manage food expenses, but over a third of these users—around 34.8%—failed to make timely payments.
Data points to middle-income earners facing the worst impact from food price hikes. For households earning between 200% and 400% of the federal poverty level, the rate of those missing minimum credit card payments for groceries surged from 9.3% in 2023 to 12.3% in 2025.
The Urban Institute comments that while access to credit and savings can be crucial for families striving to meet basic needs, an overreliance on these options can lead to financial instability, especially if families struggle with debt or find it hard to recover after depleting their savings.
