The Federal Reserve Bank of New York released a survey on Wednesday showing that American consumers increasingly expect inflation to worsen in the year ahead, while their perception of their own financial situation has deteriorated. More households reported being in a worse financial position than a year ago and expecting further deterioration in the coming months. Gas prices rose nearly 4% in August and more than 27% from August 2025, reaching a national average of $4.37 per gallon versus about $3.12 a year earlier, according to AAA. Economists say these elevated fuel costs threaten to push up prices for other consumer goods at a time when households remain concerned about affordability. Heather Long, chief economist at Navy Federal Credit Union, said consumers are “feeling the squeeze” and many are dipping into savings or using credit to continue spending, which is not sustainable.
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