American consumers are increasingly feeling the pinch of skyrocketing prices at the gas pump and grocery store. Gas prices recently hit a record national average of over $5 per gallon, while prices for food staples like eggs, meat, and vegetables have shot up 10-20% in the past year.

This surge in gas and food prices is straining many household budgets, forcing difficult tradeoffs. Some families are choosing between filling up their gas tank or putting food on the table. Many are turning to credit cards or drawing from savings to cover these necessities.

Several factors are driving this price spike, from pandemic-related supply chain issues to Russia’s invasion of Ukraine. But the major force is red-hot inflation, which hit 8.6% in May – the highest since 1981. Rising wages and demand are also passing costs to consumers.

Unfortunately, relief may not come soon. Global oil supplies remain tight, keeping gas prices elevated through the summer driving season. Droughts and disease outbreaks are impacting crop yields, while the war in Ukraine is disrupting fertilizer and grain shipments. These will maintain pressure on food costs.

Forecasters expect inflation to remain well above the Fed’s 2% target through 2023. Prices at the pump may fall slightly by year-end but remain above $4 per gallon. Grocery bills will likely stay inflated as well. This means further budgetary pain for many households.

Coping strategies for consumers include shopping at discount grocers, buying generic brands, using fuel price apps to find the cheapest gas nearby, and reducing discretionary driving and spending. But these provide little comfort to lower-income families struggling with the essentials.

Policymakers are scrambling for solutions, but the Federal Reserve’s interest rate hikes may take months to cool demand and prices. Unless inflation pressures meaningfully decrease, consumers face a long road ahead of high gas and food costs. Households may need to brace for further impact to their wallets.