Prices picked up again

The Consumer Price Index rose 0.4% in August and 3.4% over the year. Energy jumped 2.1% after falling in July, with gasoline alone up 3.9%.

Rent and groceries keep climbing

Shelter rose 0.3% for the month and 3% over the year. Food and beverages edged up 0.1%, but restaurant meals are 3.4% pricier than last August.

The bills that come first

Housing, groceries and gas get paid before anyone decides on a restaurant meal, a trip or a new couch. When those rise, the leftover pot shrinks.

Half have already cut

PYMNTS found 53% of paycheck-to-paycheck consumers struggling with bills had cut dining, entertainment and travel over the past year. Only 23% spent more.

A split down the middle

Among those not living paycheck to paycheck, 30% increased nonessential spending against 27% who cut. They were the only group where spending up beat spending down.

Cheaper sofas, no buyers

Furniture and bedding prices fell 0.9% in August and apparel was flat. But PYMNTS' buying climate subindex stayed below 50, so shoppers still see a bad time for big purchases.

Why people got stuck

In a survey of 2,881 consumers, 41% of paycheck-to-paycheck households blamed everyday spending, 31% a short-term shock, and 28% long-term choices like housing, school or debt.

What's left to cut hurts

The easy trims, lunches out and subscriptions, are done. Next up are travel, childcare and student loans, while housing, insurance and cars are the hardest to touch at all.

“The next thing on the list to cut has consequences the whole household can feel.”