The question of whether life has become more affordable in America sparks heated debates around kitchen tables and coffee shops across the country. Looking at the numbers from September 2025, the picture is mixed, like a jigsaw puzzle with some pieces fitting better than others.
Inflation continues to bite American wallets, with prices rising 3.0% over the past year. That’s higher than the 2.8% increase most Social Security recipients received, meaning their purchasing power actually shrunk. It’s like getting a raise that doesn’t quite keep up with your grocery bill.
When inflation outpaces Social Security increases, fixed-income Americans watch their buying power slip away like sand through fingers.
Speaking of groceries, food prices jumped 3.1% annually, outpacing general inflation. Your weekly trip to the store likely costs more than it did last year. Beef, vegetables, and eggs saw particularly sharp increases, though some relief came from cheaper fats and oils.
Monthly changes tell an interesting story too, with September’s 0.3% increase following August’s steeper 0.4% climb.
Geographic location matters tremendously for affordability. Missouri residents enjoy life at about 89% of the national average cost, making their dollars stretch further. Within Missouri, folks in Joplin pay even less at 84% of national averages, while Springfield residents face slightly higher costs at 92.6%.
Meanwhile, people in Hawaii, Alaska, and coastal areas watch their paychecks disappear much faster. Hawaii commands the nation’s highest cost of living with an overall index at 179.7, making it nearly twice as expensive as the national average.
Housing remains the elephant in the room, gobbling up larger portions of family budgets nationwide. Even in traditionally affordable regions, rising mortgage rates and rents squeeze household finances.
Transportation and energy costs add another layer of complexity, fluctuating with fuel prices and market demands. Many businesses are turning to managed IT services to reduce operational costs while maintaining technological efficiency in this challenging economic environment.
The reality is that affordability depends heavily on where you live and what you buy. Someone in rural Missouri might feel their dollar goes reasonably far, while a family in California or New York faces much steeper challenges.
Food prices affect everyone, but housing costs vary dramatically by location. Looking ahead, food-away-from-home prices are forecasted to grow 3.9% in 2025, suggesting restaurant meals will become even more expensive.
Rather than a simple yes or no answer, America’s affordability story is nuanced. Some categories cost more, others less, and your zip code often determines which camp you’re in.
The numbers suggest mixed progress rather than clear victory.
