Adjusting to the current rising prices is proving challenging for many Americans, from everyday items like eggs to larger purchases like cars. A recent report by Wells Fargo revealed that almost all Americans are experiencing “sticker shock,” regardless of their income levels. It is reported that 90% of adults are taken aback by the costs of goods such as water bottles, gas, dining out, and event tickets, with prices often being 55% to 200% higher than expected.
As a result, many Americans are cutting back on spending, making financial decisions, and postponing life plans, according to the Wells Fargo report, which surveyed over 3,600 consumers. Michael Liersch, head of advice and planning at Wells Fargo, noted that the unpredictability of the dollar’s value is leading to shifting consumer behaviors. While adapting to this new normal will take time, consumers may become less surprised by prices next year and adjust their financial plans accordingly.
Some changes are already noticeable, with a slowdown in the growth of credit card debt indicating that consumers are becoming less reliant on credit cards to cover expenses. However, the looming 25% tariffs on imports from Canada and Mexico proposed by President Donald Trump may further drive up prices in the near future, causing concerns about inflation among consumers.
Experts warn that tariffs could particularly impact consumer staples like groceries, which have already seen a significant price increase in recent years. The fear of rising prices and inflation is weighing heavily on consumers, as evidenced by declining consumer confidence and sentiment indices.
To combat “sticker shock,” savings expert Andrea Woroch suggests creating a spending plan and tracking expenses to identify unnecessary purchases and areas where prices are rising. She advises setting goals for reducing nonessential spending and avoiding impulse purchases by understanding triggers and unsubscribing from sales notifications and newsletters.
Taking control of spending habits can help reduce the stress associated with rising costs and uncertainties in the current economic climate.
“Don’t worry about how you’re going to afford higher prices,” Woroch said. More from CNBC: China vows to retaliate as necessary after Trump threatens 10% tariff hike. Bitcoin briefly dips under $80,000, heading for its worst week since 2022 FTX collapse. OpenAI is launching GPT-4.5, its next general-purpose large language model.
