TSX gains after CPI shows US inflation rose 3%
Investing.com -- A new survey from TD Bank reveals that inflation is reshaping spending habits across the United States, with 87% of consumers changing their spending patterns due to rising prices.
Nearly one-third (29%) of respondents reported pulling back on nonessential purchases, while about one in five (19%) are seeking more discounts and promotions, according to the survey conducted in August.
"The cost of living continues to rise, making it even more important to have a good grasp on your finances and the tools available to you," said Chris Fred, Head of Credit Cards and Unsecured Lending at TD Bank.
The impact of inflation crosses income levels, affecting 84% of households earning over $100,000 annually and 88% of those with incomes under $50,000.
Groceries represent the largest credit card spending category for 46% of Americans, followed by gas at 13%. Nearly half of surveyed consumers (49%) reported their grocery spending has increased the most over the past year, while 10% cited gasoline as their biggest spending increase.
The economic outlook among respondents is divided, with 40% feeling optimistic, 38% pessimistic, and 22% neutral. Regarding personal finances, 41% feel the same as six months ago, 35% feel better, and 25% feel worse.
The survey also found that 73% of Americans carry credit card debt, with 55% owing less than $6,000 and 10% carrying balances of $10,000 or more. Among those with credit card debt, 25% expressed significant concern about their debt levels, 36% were somewhat concerned, and 39% showed little to no concern.
When it comes to credit card benefits, consumers value rewards (35%), low interest rates (23%), and low or no fees (17%) the most. For those with cash back rewards, statement credits (34%) and direct deposits (20%) were the preferred redemption methods.
"We’ve found time and time again that when inflation is taking a toll, consumers value flexibility and cash back rewards from their credit cards. The right credit card can really help when budgets are tight," said Scott Adamo, Head of U.S. Franchise Unsecured Lending at TD Bank.
The survey was conducted online among 1,013 U.S. adults with credit cards from August 13-15, 2025.
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