Inflation remains a challenge for most U.S. households, the Federal Reserve Board said Tuesday in issuing its Economic Well-Being of U.S. Households in 2023 report. Overall, the report shows that financial well-being was nearly unchanged from 2022.
The report draws from the Board’s 11th annual Survey of Household Economics and Decisionmaking (SHED), which was fielded in October 2023. It analyzes topics including financial well-being, income, employment, expenses, banking and credit, housing, higher education and student loans, and retirement and investments.
Despite the moderating pace of inflation, 65% of adults said that changes in the prices they paid compared with the prior year had made their financial situation worse in 2023. That included 19% who said price changes made their financial situation much worse.
“The SHED provides valuable insight into the financial conditions of American households,” said Federal Reserve Board Governor Michelle W. Bowman. “This perspective continues to help the Federal Reserve better understand how families are coping with the ongoing economic challenges they face.”