High Prices Are Why Middle-Class Families Are Anxious

Middle-class families do not need lectures about inflation being “manageable.” They see the problem every month when they pay their bills. Cost-of-living pressure is real, persistent, and concentrated in the expenses households cannot avoid.

Since November 2019, prices for basic necessities have surged far faster than overall inflation. Motor vehicle insurance costs have jumped 56.1 percent, the largest increase of any major consumer category. Utility gas service and motor vehicle maintenance costs are both up 48.8 percent. Coffee prices have climbed 46.1 percent. Electricity prices are up 40.4 percent. Meat, poultry, and fish prices have risen 38.1 percent, while food away from home has increased 34.8 percent.

By comparison, overall inflation has risen about 26 percent over the same period.

That gap explains why families are anxious. Households do not live on averages. They live on insurance premiums, energy bills, food prices, and transportation costs. When the fastest-rising prices are basic necessities, financial stress is unavoidable.

This is also why inflation feels worse than headline numbers suggest. Many of the most important household expenses sit well above general inflation. These are recurring costs that compound month after month, leaving families little room to adjust or cut back.

Asset owners are largely insulated from this dynamic. Inflation tends to lift asset values over time, offering a partial hedge. Wage earners and renters do not get that protection. They face higher prices without an automatic offset.

The policy response is straightforward, even if it is politically difficult.

First, monetary policy must remain tight until inflation is decisively under control. Loose money helped create today’s price surge. Reversing course too early would only lock in higher costs.

Second, trade policy needs reform. Tariffs raise input costs across the economy, particularly for energy, food, and transportation. Those costs are passed directly to consumers and worsen cost-of-living pressures.

Third, federal spending must come down. Persistent deficits fuel inflationary pressure and leave families paying more for everyday goods. Lower government spending is essential to restoring price stability.

There are no shortcuts. Subsidies, price controls, and messaging campaigns will not fix this problem. Middle-class families need disciplined policy that brings costs down, not excuses that explain them away.