Though it has recently slowed, rising prices remain a major issue for many Americans who are struggling with an affordability crisis.
In 2026, prices rose by 2.4 percent on average compared to 2025. This inflation rate is slightly less than 2025, with a 2.6-3 percent average increase.
“I constantly hear about affordability and how prices continue to increase,” said sophomore Remy Friedberg. “It’s a real issue that I know many Americans are dealing with, but it looks like it was worse last year, so that makes me hopeful.”
Despite the inflation rate slowing, Americans still find it difficult to afford necessities, as they were already expensive before this recent growth.
One of the biggest drivers of price increases is the surge in oil prices, spurred by the conflict with Iran. At one point, oil was worth around 110 dollars per barrel, though it fell soon after.
Iran is a major oil supplier to China, and China is Iran’s biggest buyer because Iran can not sell oil to most of the rest of the world due to sanctions. Iran’s oil production has decreased amid the war, so as the supply of oil declines, prices become higher even if most countries don’t buy oil from Iran.
Iran blocked the Strait of Hormuz, a vital shipping lane, and began targeting ships belonging to the U.S. and Israel. This led to a major disruption in the supply of products, especially oil.
Oil is used for energy and transportation, so when the supply chain has to spend more money to power its shipping and production, the price of products consequently increases.
This includes the cost of groceries. The U.S. Bureau of Labor Statistics reported that in February, the price of fruits and vegetables were 2.7 percent more expensive than the year prior, and the price of nonalcoholic beverages and materials rose by 5.6 percent.
Fortunately, the price of dairy only increased by 0.1 percent, and the price of meat, poultry, fish and eggs increased by 0.4 percent.
Junior Noah Stoch said, “Under 3 percent inflation is a good thing, and it’s a really positive sign that dietary necessities remain at around the same prices as before.”
The cost of housing rose by 3 percent, contributing to an already expensive housing market.
The cost of medical care, which has been a source of enormous financial and political strain for Americans in recent years, rose by 0.3 percent in January and 0.5 percent in February.
This is due to rising medical workers’ wages, the integration of more expensive equipment and technology, higher insurance costs, and rising expenses for energy, rent and supplies, as in other sectors of the economy.
Inflation hit a peak in 2022, when prices increased by 9.1 percent compared to the previous year. That was mostly due to the rise in costs after the COVID-19 pandemic, which caused a major disruption in production and the supply chain.
Since then, although prices remain too high for many Americans and continue to climb, inflation has risen at a slower rate each year.
“I’m a little worried, but not yet at a complete loss of hope for what inflation might look like when we are adults,” said junior Noah Berkowitz.
