News Number of the Day Inflation Hits Household Saving Rate Number of the Day: The most relevant or interesting figure in personal finance By Diccon Hyatt Updated on April 5, 2022 Fact checked by Helen Reis Fact checked by Helen Reis Helen is the senior news editor for The Balance and a veteran journalist with more than 17 years of experience, mostly in business and finance news. She is passionate about making complicated topics easy for everyone to understand and compulsive about accuracy and transparency. learn about our editorial policies That's how much disposable income U.S. households have saved recently—about half (or less) of what we saved during most of the pandemic—as rising inflation raises costs. Consumers set aside 6.3% of their disposable income in February and 6.1% of their disposable income in January—a range lower than the country has seen for virtually all of the last decade, and a long way away from the double-digit saving rates seen during much of the pandemic, data from the Bureau of Economic analysis showed Thursday. Indeed, we’re a world apart from the one-third (33.8%) of income that people saved in April 2020 right after COVID-19 hit. Where cash aid from the government and a lack of things to spend on during COVID-19 lockdowns once made many U.S. consumers into super savers, inflation at the highest levels in decades is now doing the opposite, forcing them to spend a bigger share of their income on all those higher-priced items. Inflation and rising gas prices were among the top economic concerns U.S. adults had in a Gallup poll taken in the first half of March, with 17% citing inflation as the biggest problem facing the country, up from 8% in January. From a broader economic perspective, there are advantages and disadvantages to spending more and saving less. On the one hand, it may buttress overall economic growth if people spend money instead of saving it. On the other hand, when people are spending less, it relieves some of the pressure driving prices higher, economists at Wells Fargo said in a commentary. Have a question, comment, or story to share? You can reach Diccon at email@example.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning! Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Bureau of Economic Analysis. “National Income and Product Accounts.” Bureau of Economic Analysis. "Personal Income and Outlays, February 2022." Gallup. "Inflation Dominates Americans' Economic Concerns in March." Wells Fargo. "Inflation's Toll Evident in Real Spending Decline, Income Still Solid."