Consumer News: Falling gasoline prices drive biggest monthly drop in inflation since 2020

The good old days were not that long ago

By Mark Huffman of ConsumerAffairs

• Twenty-five years ago, economists worried that prices might stop rising altogether. Today, consumers face housing, healthcare, insurance, and grocery bills that have climbed much faster than wages in many cases.

• The change wasn't caused by a single event. A series of structural shifts including the pandemic, supply chain disruptions, labor shortages, housing shortages, and government stimulus combined to end an era of unusually low inflation.

• The economy has shifted. Many economists say the U.S. economy has moved from a world where globalization kept prices down to one where supply constraints and geopolitical tensions make inflation more persistent.

Twenty-five years ago, the Federal Reserve had a problem that seems almost unimaginable today: it was worried prices weren't rising enough.

Following the technology boom and into the early 2000s, inflation remained remarkably subdued despite a strong economy. After the 2008 financial crisis, those concerns intensified as policymakers feared deflation a broad decline in prices that can discourage spending, reduce business investment, and make recessions worse. The Fed kept interest rates near zero for years and repeatedly struggled to push inflation up to its 2% target.

Fast forward to today, and Americans are living in a very different economic landscape. While inflation has slowed from its 2022 peak, the cumulative increase in prices since the pandemic has permanently raised the cost of living, leaving many households wondering what changed.

Economists point to several major shifts.

Globalization stopped holding prices down

One of the biggest differences between the early 2000s and today is globalization.

For decades, American companies increasingly sourced products from low-cost countries, particularly China. Advances in technology, global shipping, and international trade created fierce competition that kept prices low for everything from electronics to clothing.

Researchers at the Bank for International Settlements and the International Monetary Fund have found that globalization, lower import prices, and increased competition were important reasons inflation remained unusually subdued during the 1990s and early 2000s.

That trend has weakened significantly.

Companies have begun diversifying supply chains, governments have imposed tariffs on some imports, and geopolitical tensions have encouraged businesses to manufacture closer to home. Those changes improve supply chain resilience but often come with higher costs.

The pandemic changed everything

COVID-19 delivered perhaps the largest inflation shock in decades.

Factories shut down, shipping networks became clogged, semiconductor shortages slowed production, and consumers suddenly shifted spending from services to physical goods. At the same time, unprecedented government stimulus and historically low interest rates left consumers with significant purchasing power just as supplies became scarce.

The result was too much demand chasing too few goods.

The IMF says the inflation surge of 2021 and 2022 was driven by a combination of exceptionally tight labor markets, large relative price shocks especially energy and automobiles and strong consumer demand.

Housing became much more expensive

Housing now plays a much larger role in household budgets than it did two decades ago.

Years of under-building following the Great Recession left the United States with millions of fewer homes than needed. When mortgage rates fell to record lows during the pandemic, demand surged while supply remained constrained.

Home prices soared, rents climbed, and shelter costs became one of the biggest contributors to overall inflation.

Unlike gasoline prices, housing costs tend to adjust slowly, meaning they can keep inflation elevated long after other prices stabilize.

Labor shortages increased wage pressure

The labor market has also changed. Baby Boomers have retired in large numbers, immigration slowed during and after the pandemic, and many workers reassessed career choices.

Employers responded by raising wages to attract and retain employees. Higher wages benefit workers but also increase costs for labor-intensive industries such as restaurants, healthcare, and hospitality, where businesses often pass at least part of those costs on to consumers.

Americans also spend more on services than they once did. Healthcare, insurance, education, childcare, and housing generally experience faster price growth than manufactured goods because they rely heavily on labor and are harder to automate or import.

Even as prices for televisions and computers have remained relatively stable or even fallen the growing share of spending devoted to services has pushed overall household expenses higher.

Energy and geopolitics have become recurring inflation risks

Oil shocks once seemed like relics of the 1970s. Today, geopolitical conflicts, trade disputes, and shipping disruptions can quickly ripple through global energy markets. Higher fuel costs raise transportation expenses, which eventually feed into the prices consumers pay for food, retail goods, and travel.

The Bank for International Settlements notes that once inflation becomes widespread rather than confined to a few sectors, it can become self-reinforcing as businesses and workers begin expecting higher prices and wages.

The era of 'too little inflation' is over for now

The irony is that the Federal Reserve spent much of the 2000s and 2010s trying unsuccessfully to generate more inflation. Today, the challenge is the opposite: bringing inflation back toward 2% without triggering a recession.

Even if inflation returns to the Fed's target, consumers should not expect prices to return to where they were before the pandemic. Inflation measures the rate at which prices increase, not whether prices fall.

For millions of Americans, that means the higher cost of groceries, housing, insurance, and healthcare is likely to remain a defining feature of the post-pandemic economy even if inflation itself eventually returns to normal.

Foreclosures are selling for 27% below market values

By Mark Huffman of ConsumerAffairs

• Foreclosed homes are selling at steep discounts, with the typical property fetching 27.2% less than its estimated market value, according to Realtor.com.

• The savings can come with added risks, including costly repairs, title issues, and lengthy buying processes that require careful due diligence.

• Foreclosure listings have climbed to their highest level in six years, giving bargain hunters more options but also more competition.

During the financial crisis and resulting housing market crash, many people were able to buy foreclosed homes at rock-bottom prices. That opportunity may be reappearing, though not nearly to the same scale as the 2009-2010 period.

A new Realtor.com report shows that the median foreclosed home sold for 27.2% below its estimated market value, making these properties among the biggest discounts available in today's housing market. At the same time, foreclosure listings have risen to their highest level in six years, accounting for 1.3% of all homes for sale in April 2026.

Despite the increase, housing economists stress that the market is not showing signs of a foreclosure crisis.

"Foreclosures are normalizing, not accelerating into a crisis," said Joel Berner, senior economist at Realtor.com.

The unusually low foreclosure rates seen during the pandemic were driven by foreclosure moratoriums, mortgage forbearance programs, and rapidly rising home values that gave many homeowners enough equity to avoid losing their homes. As those temporary factors have faded, foreclosure activity has gradually returned to more typical levels.

Bargains attract plenty of attention

The discounts have not gone unnoticed.

According to the report, foreclosure listings received 26.5% more online views than the average home listing during the first half of 2026, even though they remained on the market about 11 days longer than conventional listings.

The longer selling time reflects the unique challenges associated with distressed properties, which often require additional inspections, financing approvals, or legal steps before a sale can close.

What buyers should look out for

While a foreclosure may appear to be a bargain, experts caution that buyers should carefully evaluate the true cost of the purchase.

Among the most important considerations:

• Property condition: Many foreclosed homes have been vacant for months or even years. Deferred maintenance, vandalism, water damage, and outdated systems can result in expensive repairs.

• Inspection limitations: Some lenders sell foreclosed properties "as is," and buyers may have limited opportunities to negotiate repairs.

• Title issues: Unpaid taxes, liens, or legal claims can sometimes complicate ownership, making a thorough title search and title insurance essential.

• Financing challenges: Homes needing substantial repairs may not qualify for conventional mortgages, requiring renovation loans or cash purchases.

• Competition: Because the discounts are attractive, desirable foreclosures can still generate multiple offers.

Real estate professionals generally recommend buyers build repair costs into their budget, hire experienced inspectors whenever possible, and work with an agent familiar with foreclosure transactions.

More opportunities in some markets

The report found that foreclosure activity varies significantly across the country, with some metropolitan areas seeing much larger shares of distressed listings than others. Buyers willing to search in markets with higher foreclosure rates may find more opportunities, although local economic conditions and neighborhood trends remain important factors when evaluating any purchase.

For buyers willing to do their homework, a foreclosure can provide an opportunity to purchase a home below market value. But the lowest purchase price does not always translate into the lowest overall cost, making careful research and due diligence essential before signing a contract.

GLP-1 weight-loss drugs had the highest denial rate

By Mark Huffman of ConsumerAffairs

• Insurance denials for first-time prescriptions of brand-name drugs with no generic alternative jumped 67% between 2018 and 2024, according to a new study published in JAMA.

• Nearly half of patients whose prescriptions were initially denied never filled either the prescribed medication or a similar drug within 90 days, raising concerns about delayed or foregone treatment.

• Researchers say growing use of prior authorization, step therapy, and formulary exclusions are the primary drivers of the increase, reflecting insurers' efforts to control soaring prescription drug costs.

Americans prescribed brand-name medications without generic alternatives are increasingly running into insurance roadblocks at the pharmacy counter. A newly published study found that denial rates rose dramatically between 2018 and 2024.

The study, led by researchers at the Johns Hopkins Bloomberg School of Public Health and the American Enterprise Institute and published in the Journal of the American Medical Association (JAMA), analyzed more than two million first-time prescription fill attempts across commercial insurance, Medicare, Medicaid, and Affordable Care Act marketplace plans.

Researchers found that insurers rejected 40.7% of initial attempts to fill brand-name prescriptions in 2024, up from 24.3% in 2018 a 67% increase.

The consequences often extended beyond a temporary inconvenience. Among patients whose prescriptions were initially denied, 48.4% did not fill either the prescribed medication or another drug in the same therapeutic class within 90 days. Those who ultimately obtained treatment waited an average of 12 days after the initial rejection.

"We found that insurance restrictions are increasingly shaping whether and when patients receive medications their clinicians prescribe," lead author Joseph Levy, an assistant professor in the Bloomberg School's Department of Health Policy and Management, said in a statement.

"While these policies may help control drug spending, they can also create meaningful barriers to timely treatment and place growing administrative burdens on patients, pharmacists, and clinicians."

Prior authorization a growing hurdle

About one-third of all initial prescription attempts were rejected because of formulary exclusions or utilization management policies, such as prior authorization requirements or step therapy, which require patients to try less expensive medications before insurers will cover the prescribed drug.

The researchers concluded that the growing use of these utilization management tools accounted for most of the increase in denials during the study period. Commercial insurance plans and Medicaid managed care plans experienced some of the largest increases in these restrictions.

Denial rates also varied significantly by drug category. Medications in the incretin class including GLP-1 weight-loss drugs had the highest rejection rate at 85%, while oral anticoagulants had one of the lowest rates at 6.7%.

Marketplace plans and Medicaid managed care plans posted the highest overall denial rates, with nearly half of all first-time prescription attempts rejected. Medicare plans generally had lower rejection rates.

Balancing access and costs

The study comes as insurers face mounting pressure to manage spending on expensive brand-name drugs, particularly specialty medications and newer therapies that can cost thousands of dollars per month.

According to the Association for Accessible Medicines, cited by the researchers, brand-name drugs accounted for only about 10% of prescriptions filled in 2024 but represented 88% of total prescription drug spending about $700 billion. By contrast, generic drugs and biosimilars made up roughly 90% of prescriptions while accounting for only 12% of spending.

The researchers acknowledged that utilization management can help insurers negotiate lower prices and encourage cost-effective prescribing. However, they suggested that simplifying and standardizing prior authorization requirements, along with providing clinicians with real-time information about insurance coverage, could reduce unnecessary delays in treatment while preserving insurers' ability to manage costs.

Simple changes that can have a big impact on your budget

• Skip the gimmicks. The biggest savings often come from avoiding impulse purchases, tracking your spending, and reviewing recurring bills not tiny "money hacks."

• Spend with intention. Buy used when possible, learn a few basic DIY skills, and reduce food waste to keep more money in your pocket without sacrificing quality of life.

• Build habits, not budgets you can't keep. Small, consistent changes are far more likely to save you thousands over time than extreme frugality.

Scroll through social media and you'll find no shortage of "money-saving hacks." Skip your morning latte. Reuse sandwich bags. Unplug your toaster.

While those tips may save a few dollars, they often miss the bigger picture.

People who consistently build wealth usually don't rely on one dramatic trick. Instead, they develop everyday habits that reduce waste, prevent impulse spending, and help them make smarter decisions with their money.

Here are seven frugal habits that can actually make a meaningful difference in your budget.

1. Pause before buying

Impulse purchases are one of the biggest budget killers. Whether it's a late-night Amazon order or an item you spotted on social media, giving yourself time to think can dramatically reduce unnecessary spending.

Many financially savvy shoppers follow a simple rule: leave the item in your online shopping cart for at least 24 hours before buying it. For larger purchases, consider waiting a full week.

More often than not, you'll realize you didn't really need it.

Pro tip: Create a "Want List" on your phone. If you still want the item after a few days (and it fits your budget), you'll know it's a thoughtful purchase instead of just another impulse buy.

2. Track every dollar for one month

You can't improve what you don't measure. Many people are surprised when they see how much they're actually spending on takeout, subscriptions, convenience store stops, or online shopping.

You don't need complicated budgeting software. A simple spreadsheet, notebook, or budgeting app works just fine. I realize it sounds obvious, but finding places to cut back is only possible when you know where your money is actually going every month.

Pro tip: Review your bank and credit card statements at the end of each month and highlight every purchase you regret. Those are often your biggest savings opportunities.

3. Buy used before buying new

Some items lose value the moment they're purchased but still have years of useful life left.

Furniture, tools, sporting equipment, baby gear, bicycles, musical instruments, and even small appliances can often be found in excellent condition for a fraction of their original price.

Checking Facebook Marketplace, local thrift stores, yard sales, and consignment shops before buying new can easily save hundreds of dollars throughout the year.

Pro tip: Before buying anything over $100, spend a few minutes searching local resale sites. You may just find the exact same item for 30% to 70% less than if you were to buy it new.

4. Learn a few basic DIY skills

You don't need to become a professional mechanic or contractor to save money.

Things like replacing a furnace filter, changing windshield wipers, installing a new showerhead, patching drywall, or replacing an air filter in your car are all beginner-friendly projects that can save on labor costs.

The internet has made learning these skills easier than ever, with countless step-by-step tutorials available for free, especially on YouTube.

Pro tip: Start with one new repair each season. By building your skills gradually, you can easily save thousands of dollars over your lifetime.

5. Waste less food

The average household throws away a surprising amount of perfectly edible food each year. This often happens because leftovers are forgotten, produce spoils before it's used, or ingredients are purchased without a solid meal plan.

One simple habit is to designate one dinner each week as a "use-it-up meal," where you cook with ingredients already sitting in your refrigerator, freezer, or pantry. Not only does it reduce waste, but it also helps stretch your grocery budget.

Pro tip: Freeze leftover vegetables before they spoil. Then later you can toss them into soups, stews, casseroles, or pasta sauces instead of throwing them away.

6. Question every recurring bill

Subscriptions have become a part of modern everyday life. Things like streaming services, fitness apps, cloud storage, meal kits, premium memberships, and software subscriptions can quietly add up to hundreds of dollars each month.

Get in the frugal habit of setting up a reminder two to three times per year to review every recurring charge on your bank or credit card statement.

If you haven't used it recently (or forgot you even had it) it may be time to cancel.

While you're at it, compare your internet, cell phone, and insurance rates. Loyalty doesn't always pay, and many companies offer better deals to new customers than existing ones.

Pro tip: Give your provider a call (or start a live chat) and ask if there are any current promotions available before renewing your service. A five-minute phone call to negotiate your bill could easily save you hundreds of dollars a year.

7. Focus on habits, not deprivation

Perhaps the biggest misconception about frugal living is that it means never spending money. In reality, the most financially successful people tend to spend intentionally.

This means they'll happily spend money on things they truly value like travel, hobbies, or quality shoes. Then theyll cut back on purchases that don't improve their lives. That's what makes their habits sustainable in the long-run.

In other words, instead of trying to save money everywhere, focus on the areas where spending doesn't bring you much happiness and cut those things out of your life first.

Pro tip: Keep it simple and pick just one new habit to practice this month. Small, consistent improvements usually outperform dramatic lifestyle changes that are difficult to maintain.