Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

American households are facing growing financial strain as the cost of everyday essentials continues to climb, outpacing wage growth and eroding purchasing power.

On Sunday, in a post on X, The Kobeissi Letter, said “basic necessities have never been more unaffordable,” while noting the steep increases in core expenses since February 2020, with grocery prices up 29% to an all-time high and overall food prices rising 30%.

Citing data from Arbor Data Science, the post notes that this rising cost burden extends beyond just the supermarket aisle, with the cost of food away from home surging 33% and transportation services up 36%, leaving families with little room in their budgets.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

It also notes that at the same time, the U.S. Dollar’s purchasing power has been dwindling rapidly, alongside a slowing labor market. “The US Dollar has lost nearly 25% of its purchasing power during this time and wage growth has substantially slowed.”

The post concludes by saying that “Affordability is still getting worse,” with the Personal Consumption Expenditures price index last week rising 2.7% year-over-year in August, significantly ahead of the Federal Reserve’s 2% target.

See Also: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming’s Next Big Platform

Last week, economists warned that 72% of the Consumer Price Index components are surging ahead of the Fed’s 2% inflation target, driven primarily by President Donald Trump’s trade and tariff policies.

This comes amid the Federal Reserve cutting interest rates by 25 basis points this month, with more cuts expected in October and December, which could add to inflationary pressures.

Early this month, economist Peter Schiff had warned against cutting interest rates in response to a weak jobs report, saying that “Rate cuts now will harm the labor market by weakening the dollar, driving up consumer prices, and pushing long-term interest rates higher.”

Story Continues

Photo Courtesy: Morrowind on Shutterstock.com

Trending Now:

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

For those seeking fixed-income style returns without Wall Street complexity, Worthy Property Bonds offers SEC-qualified, interest-bearing bonds starting at just $10. Investors earn a fixed 7% annual return, with funds deployed to small U.S. businesses. The bonds are fully liquid, meaning you can cash out anytime, making them attractive for conservative investors looking for steady, passive income.

Self-directed investors looking to take greater control of their retirement savings may consider IRA Financial. The platform enables you to use a self-directed IRA or Solo 401(k) to invest in alternative assets such as real estate, private equity, or even crypto. This flexibility empowers retirement savers to go beyond traditional stocks and bonds, building diversified portfolios that align with their long-term wealth strategies.

Moomoo isn’t just for trading — it’s also one of the most attractive places to park cash. New users can earn a promotional 8.1% APY on uninvested cash, combining a 3.85% base rate with a 4.25% booster once activated. On top of that, eligible new users can also score up to $1,000 in free Nvidia stock—but the real draw here is the ability to earn bank-beating interest rates without having to move into riskier assets.

SoFi gives members access to a wide range of professionally managed alternative funds, covering everything from commodities and private credit to venture capital, hedge funds, and real estate. These funds can provide broader diversification, help smooth out portfolio volatility, and potentially boost total returns over time. Many of the funds have relatively low minimums, making alternative investing accessible.

Range Wealth Management takes a modern, subscription-based approach to financial planning. Instead of charging asset-based fees, the platform offers flat-fee tiers that provide unlimited access to fiduciary advisors along with AI-powered planning tools. Investors can link their accounts without moving assets, while higher-level plans unlock advanced support for taxes, real estate, and multi-generational wealth strategies. This model makes Range especially appealing to high-earning professionals who want holistic advice and predictable pricing.

For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It’s a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.

This article US Households Grapple With 29% Grocery Surge, As Dollar Loses 25% of Value: ‘Affordability Is Still Getting Worse,’ Says Market Expert originally appeared on Benzinga.com