# Shoppers squeezed by inflation and higher interest rates

> Inflation and interest rates strain shoppers' budgets as prices surge.
- Title: Shoppers squeezed by inflation and higher interest rates
- Summary: Inflation and interest rates strain shoppers' budgets as prices surge. Rising inflation and interest rates are making it harder for shoppers to afford…
- Keywords: inflation, interest rates, grocery prices, housing, university of michigan, federal reserve, gas prices, new york, news, local, Shoppers, squeezed
- Source: ABC7 New York — https://abc7ny.com/story/cant-catch-break-shoppers-squeezed-surging-inflation-higher-interest-rates/19865125
- Published: 2026-09-24T11:52:55+00:00
- Read time: 1 min
- Topics: inflation, interest rates, grocery prices, housing, university of michigan, federal reserve, gas prices, new york, news, local
## Kelsey Benson's financial strain
Kelsey Benson, 32, in Queens, New York, lost health insurance after being laid off and faces a $500 medication cost jump.

> You should not have to wear yourself down to nothing to be able to live
## Inflation surge impacts households
A monthslong inflation surge driven by the Iran war has raised costs for gasoline, groceries, and other essentials nationwide.
## Consumer survey shows worsening outlook
A University of Michigan consumer survey indicates shoppers expect higher inflation and feel their financial outlook has worsened.
## Treasury rates hit two-decade high
A key long-term Treasury rate reached its highest level in nearly two decades, pushing up credit card and mortgage rates.
## Drew Davis's grocery struggles
Drew Davis, 26, a New York City law student, noticed beef and chicken prices rose $1-$2 since he started law school three years ago.
## Gas prices at $4.47 per gallon
The average U.S. gas price is $4.47, a 50% increase since the Iran war began.
## Grocery prices up 20% in five years
Grocery prices have increased more than 20% over the last five years, according to U.S. Bureau of Labor Statistics data.
## Steve Prentice's gas concerns
Steve Prentice, 70, in Tennessee, says gas prices have reached $4 per gallon for the first time in his memory.
## Key takeaway

Rising inflation and interest rates are making it harder for shoppers to afford essentials and plan for the future.