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In October 2025, consumer confidence in the U.S. declined slightly due to continued concerns about inflation. The consumer confidence index dropped from 95.6 to 94.6, showing that many people are feeling uncertain about the economy. Although prices are not rising as fast as earlier in the year, inflation still grew by 3% compared to last September. Gasoline prices, in particular, went up noticeably, which affects how much money people have left to spend on other things. Even though some feel good about the current job market, worries about the future, like rising costs and job security, are making people more cautious with their money.

As the 2025 holiday season approaches, many American families are cutting back on spending due to high inflation and a government shutdown. According to recent reports, people plan to spend 7% less overall compared to last year. Gift spending is expected to drop by 4%, while non-gift items like decorations and home goods may see a 12% decrease. This change shows how rising prices are forcing households to be more cautious with their money. With everything from groceries to energy bills costing more, many consumers are trying to make their limited budgets go further, even during the holidays.

Inflation in the U.S. is proving harder to control in late 2025 than many experts had hoped. Prices for everyday essentials like gas, fruits, and beef have continued to rise, making it more expensive for households to meet basic needs. The Consumer Price Index (CPI)—a key measure of inflation—went up 0.3% last month, largely due to gas prices jumping over 4%. At the same time, new tariffs on imported goods are driving up costs even more, and the Federal Reserve now expects core inflation to hit 3.1% for the year, higher than previous forecasts. To make things tougher, job growth is slowing down, with the economy adding only about 27,000 jobs a month. This combination of rising prices and fewer new jobs is putting pressure on families all over the country.