The Consumer Finance Index also rose 8.7% quarter-over-quarter, reflecting a sharp uptick in legal inquiries about defaults, loan modifications, and other financial distress, as sustained inflation and high interest rates weigh on borrowers.
The US Consumer Price Index (CPI) is expected to have risen 0.3% in June, its largest monthly increase since January, largely due to rebounding gasoline prices and tariff-related goods. The annual inflation rate is forecast at 2.7%, up from 2.4% in May, according to economists surveyed by Reuters.
“While inventory front-running has mitigated the need to raise goods prices, it will become increasingly difficult for businesses to absorb higher import duties,” said Sarah House, senior economist at Wells Fargo.
Recent tariff announcements from president Donald Trump, set to take effect August 1, could further intensify cost pressures on imported goods, including from Canada, Mexico, Brazil, Japan, and the EU.
LegalShield’s findings arrive just weeks ahead of the Federal Reserve Bank of New York’s second-quarter household debt report, with Q1 data already showing troubling signs. Household debt hit a record $18.2 trillion, including a $199 billion increase in mortgage balances and a $6 billion rise in home equity lines of credit.