Inflation is disproportionately affecting lower and middle-income Americans, driven in part by tariffs, even as the overall US economy remains strong for higher earners. This creates a "two-tier economy" where everyday goods are becoming increasingly unaffordable for many.

• Yanique Clarke, a nursing student, notes drastically high prices for groceries and back-to-school items.
• August data from the Labor Department showed clothing prices rose 0.5% and grocery prices increased 0.6%.
• Economists like director of economics Ernie Tedeschi explain that lower-income households are more exposed to tariffs due to spending a larger portion of their budget on imported, lower-priced goods.
• McDonald's CEO Chris Kempczinski observed that middle and lower-income consumers are "feeling under a lot of pressure."
• A report from the Yale Budget Lab found core goods prices were 1.9% above pre-2025 trends as of June, indicating tariff-driven price increases.