US inflation squeezes household budgets and business sales

The Federal Reserve expects US inflation to top 2% for a sixth year running in 2026, with inflation projected at 3.7%.

Years of rising prices have reduced what American households can afford and raised costs for businesses.

Restaurants are closing as costs rise and customers fall: 7,563 shut in the first half of 2026, and the National Restaurant Association says customer numbers have dropped 49% since March 2025.

Food prices at home have risen about 30% since 2021, and four in five Americans say they are cutting supermarket spending.

Higher costs are also weighing on major food companies: Kraft Heinz reported North American sales down 3.4% in the third quarter.

US vehicle sales fell 7% from July to October, while the average passenger vehicle on the road reached 14.5 years old.

The figures show how inflation is affecting both household choices and business performance, but no further policy response is specified.