If you’re wondering why the rising cost of living keeps climbing, you’re not alone. On this episode of The Secret War on Cash, we looked at a grocery bill that more than doubled in six years, along with rising rents, foreclosures, and energy costs. Families are feeling squeezed, and relief seems far off.
So what’s actually driving these numbers, and what can you do about it? Here’s what we discussed, and what it means for you.
Key takeaways
- A 28-item Target grocery order that cost $64.50 in 2020 ran $158.30 in 2026, more than double in six years.
- Rents, home foreclosures, and energy costs are all climbing at the same time.
- 66% of Americans call grocery costs unaffordable, and 61% hold a negative view of the economy.
- Wages and policy haven’t kept pace, and 111 million people are now outside the labor force.
- Take one step to protect your savings by looking at how a tangible store of value can hold up when the dollar buys less.
Why is the rising cost of living hitting grocery bills so hard?
We talked about an article from the Economic Collapse Blog about a 28-item Target grocery order. That cart cost $64.50 in 2020. In 2026, the same 28 items cost $158.30. One family found their old 2020 receipt and rebuilt the exact cart to check.
That’s more than double in six years. Federal data tells a similar story. The USDA Economic Research Service reports that grocery prices jumped 11.4% in 2022. All-food prices rose 9.9% that year, the fastest pace since 1979 (USDA ERS).
We all see it in daily life. People are buying groceries on credit cards because they have to, and some elderly Americans are returning to work. Chris recently described spending $46 on ingredients for homemade chicken soup, about eight small cups.
What’s happening with rent, housing, and foreclosures?
Groceries are only part of it. A one-bedroom apartment in New York now rents for more than $5,000 a month. Five years ago, that same apartment ran about $2,600.
Housing stress is climbing too. Home foreclosures are up 20%, and families are relying on debt to cover both groceries and electric bills. These are the pressures we saw during the 2008 to 2009 housing crisis.
How are energy costs adding to the squeeze?
Energy costs are the next problem. They’re continuing to rise and US petroleum reserves have fallen to roughly 40 days of supply, which is the lowest level in 50 or 60 years.
The US Energy Information Administration shows the Strategic Petroleum Reserve remains well below its authorized capacity, at its lowest level in decades (EIA). When energy costs rise, they increase the price of nearly everything else, including the food on store shelves.
Who are Americans blaming for the economy?
Public frustration is building. 66% of Americans described grocery costs as unaffordable, and another survey showed that 61% hold a negative outlook on the economy.
Americans are directing that frustration at Washington. The economic outlook is worsening and 111 million people are no longer in the labor force, so they don’t show up in unemployment numbers even though they aren’t working.
How can you protect your savings from the rising cost of living?
So what can you do? When the dollar buys less each year, holding part of your savings in a tangible asset can help preserve your wealth. Physical gold is one option retirement savers have used for generations.
Gold has no counterparty risk. It doesn’t depend on a bank, a company, or a government to hold its value. Since 1971, gold has risen about 8% a year in dollar terms, according to the World Gold Council. Many people treat it as an inflation hedge and a store of value.
You don’t have to move everything at once. One approach is to dollar-cost average over 3 to 6 months. Diversifying even a small part of your savings gives you a real asset you can hold in your hand.
Final thoughts on the rising cost of living
The rising cost of living is squeezing families on groceries, rent, and energy all at once, and relief doesn’t look like it’s coming soon. Protecting part of your savings with a tangible store of value is one step you can take now.
To learn more about protecting your savings from the rising cost of living, connect with the Swiss America team today!
Rising cost of living: FAQs
Are grocery prices likely to come back down?
Probably not by much. Prices rarely fall once they rise; they usually just climb more slowly. The USDA Economic Research Service still forecasts grocery prices rising year over year.
How does inflation reduce the value of your savings over time?
Inflation means each dollar buys less than it did before. If you keep your savings in cash while prices rise, your buying power falls even though the balance looks the same.
Why is gold considered an inflation hedge?
Gold is a tangible asset with no counterparty risk, and no government can print more of it the way it prints dollars. When paper money loses value, gold has historically held its buying power, which is why the World Gold Council and many savers describe it as a store of value.
How much of your savings do people put into gold?
There’s no single rule. Swiss America has long suggested diversifying at least a small portion of your assets into US gold and silver. The right amount depends on your age, your goals, and how much stability you want.
How do you get started with gold?
Start with physical coins and bars, or a precious metals IRA for retirement accounts.
The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
