7 Expenses That Threaten to Drain Your Wallet in 2026 (With Prices Rising up to 26%)

Inflation reports may finally look a little less scary compared to record peaks during the pandemic, but your wallet probably hasn’t gotten the memo.

The costs of several essential items are still climbing faster than the overall inflation rate, according to recent reporting from AARP, as well as federal agency data and other industry forecasts.

Here are the expenses that are on track to ding your accounts more in 2026 — and what you can do to fight back.

1. Health insurance premiums

Premiums for health insurance plans sold through the Affordable Care Act Marketplace will rise by an average of 26% this year, according to nonprofit KFF (formerly Kaiser Family Foundation).

The rise in premiums is largely driven by increasing medical costs, while the expiration of enhanced premium tax credits means the net amount many enrollees pay will spike even further.

Folks with employer-sponsored plans aren’t off the hook either. Costs for large employers are expected to rise significantly, and businesses often pass those hikes along to workers through higher paycheck deductions.

2. Utility bills

Residential electricity prices are projected to rise about 4% on average in 2026. This is largely driven by necessary infrastructure updates and growing demand from data centers.

If you heat your home with natural gas, the news is a bit worse: expect those bills to tick up due to tighter fuel inventories and colder weather forecasts, according to the National Energy Assistance Directors Association.

3. Grocery staples

While overall food inflation has cooled, specific items are still seeing price spikes according to the U.S. Department of Agriculture’s Food Price Outlook.

Beef prices remain high due to shrinking cattle herds, and your morning cup of joe is getting pricier as global coffee bean prices climb.

It’s also worth remembering that even when inflation cools, prices rarely drop back to previous lower levels. They just stop rising as fast.

4. Dining out

Restaurants are battling higher labor costs and expensive ingredients, and they’re passing those tabs right to you. Prices for food away from home are predicted to rise faster than grocery prices this year, increasing by nearly 5% according to the USDA.

5. Shipping

Sending packages will cost you a bit extra. The U.S. Postal Service raised rates for several shipping services in January.

Package services like Ground Advantage and Priority Mail have seen average price hikes ranging from roughly 6% to 8%.

6. Smartphones

Thinking about upgrading your device? You might want to wait. Top-tier smartphones are becoming more expensive as manufacturers pack them with new AI features and faster processors.

7. Auto and home insurance

Home insurance premiums have surged recently, and homeowners in states prone to severe weather — like wind and hail — as well as natural disasters like wildfires will likely see rate hikes continue in 2026.

Auto insurance isn’t much better. While safe drivers might see rates stabilize compared to the massive spikes of the last few years, higher repair costs and frequent claims are keeping premiums elevated, a trend noted by the Insurance Information Institute.

Simple tips for saving

You can’t control the economy, but you can make moves to shield your budget.

• Eat at home: Since restaurant prices are outpacing groceries, making food at home is one of the easiest ways to save.
• Check medical prices: Federal law requires transparency. Use your insurer’s website or app to compare prices for procedures like MRIs before you book an appointment. The price difference between a hospital and a standalone clinic can be hundreds of dollars.
• Shop your policies: Loyalty doesn’t pay when it comes to insurance. Shopping around using a car insurance shopping site can help you find cheaper insurance. You might save up to $600 per year. Homeowners can save nearly $1,000 per year just by switching. Check your rate and start saving today.