By Kristin Myers, Editor-in-Chief

ICYMI: Inflation Caused The Balance Readers To Cut Back on Spending

In case you missed it, rising inflation has caused 76% of The Balance's newsletter and social media readers to cut back on purchases, according to a recent survey. The annual rate of inflation may have slowed a little in April to 8.3%, but it's still sitting close to 40-year highs at just below March's rate of 8.5%. Even with the slowdown, it's still a struggle for many consumers to buy groceries, clothes, gas, and other basic items.

Readers noticed the increasing cost of groceries and gas the most, followed by dining out and utilities. Over 40% of readers told us they have been "seriously impacted" by the price increases, and nearly half said they were "slightly impacted."

In addition to cutting back on spending, a quarter of our readers said they are reducing how much they save or put into their investments. Over 20% of respondents said they were struggling to pay for necessities, like rent or bills, while another 29% said they were struggling "a little" to make basic payments.

Worryingly, 15% of readers also said they're responding to the higher costs by cutting back on debt repayment. With interest rates still on the rise, repaying borrowed money (like on credit cards) will only get more expensive this year, and that could make it very difficult for some consumers to get out of debt.

- Kristin

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Off the Charts

With the end of many pandemic-related restrictions and more people traveling again, the cost of air travel climbed at a record rate, with the cost of airfare jumping 18.6% in April, up 33% from a year ago, according to a report released Thursday by the Bureau of Labor Statistics. It was the highest monthly increase ever in the bureau's index, which goes back to 1989 and measures costs for both domestic and international flights.