McKinsey and Urban Institute data show groceries are the top cost concern for Americans, with many households using credit cards and buy now, pay later loans to cover food spending amid persistent inflation.
Rising grocery bills have become the leading affordability concern for Americans and are increasingly pushing some households to use credit cards and buy now, pay later loans for basic needs. A McKinsey Institute for Economic Mobility and W.K. Kellogg Foundation survey of 30,000 Americans found 90% cited groceries and food prices as a top cost concern, ahead of housing and healthcare. Separate Urban Institute research found many families used credit and savings to pay for groceries in 2025, with repayment stress emerging across income groups. Consumer prices eased in June, but food costs still rose, leaving food prices up 3% from a year earlier. The two source records differ on the five-year increase in grocery prices, citing about 25% and 32%, respectively. Urban Institute data showed 35% of adults paid for groceries with a credit card and paid in full, 20% carried a balance while making at least the minimum payment, and 8.7% did not always make the minimum. Nearly 1 in 10 adults used buy now, pay later for groceries, and about 35% of those users missed a payment.