Americans Cut Spending Despite Rising Incomes and Cooling Inflation

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 Economic indicators are improving but new data hints at growing consumer caution, with households slowing their spending even as inflation eases and incomes rise. 

New government data shows that inflation is easing and household incomes are rising, but consumer spending is slowing. According to the Commerce Department’s April 2025 report, overall prices rose 2.1 percent compared to a year earlier, down from 2.3 percent in March. This is the slowest annual rate since September 2024. Despite those gains, many Americans appear hesitant to spend.

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