Rising Prices Could Impact Household Budgets Further
As Essity raises prices to cover costs, households facing 3.7% inflation may need to adjust discretionary spending.
Updated on Oct. 22, 2026 in Employment
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Essity reported declining sales and volumes in its professional hygiene unit during the third quarter of 2026. This downturn comes as household finances face pressure from persistent inflation and a slowing labor market.
Why it matters
Rising consumer prices and a cooling labor market are affecting spending patterns, specifically reducing restaurant attendance. These macro-economic headwinds, combined with a significant decline in net worth for lower-income households since 2022, impact business revenue and consumer financial health.
Professional hygiene products account for 40% of Essity revenue in the United States. Meanwhile, the bottom 25% of U.S. households have experienced a net worth decline of more than 50% between 2022 and 2025.
The players
Essity
A global hygiene and health company that sells professional products and is currently raising prices to manage energy and material costs.
The details
Essity is raising prices across its business segments to offset the higher costs of raw materials and energy. This pricing strategy reflects the broader 3.7% increase in U.S. consumer prices observed in September. As wage growth at 3.0% continues to lag behind these rising costs, households are pulling back on discretionary spending like restaurant dining.
Timeline
In 2019, 53% of Americans reported eating at restaurants at least once per week.
Between 2022 and 2025, the bottom fourth of U.S. households saw net worth fall by over 50%.
In September 2026, U.S. consumer prices rose 3.7% and 29,000 jobs were added.
During Q3 2026, Essity experienced a decline in professional hygiene sales and volumes.
Money Landscape
The current economic cycle is defined by high consumer costs and a labor market that added only 29,000 jobs in September. This environment follows a period of significant net worth erosion for lower-income households between 2022 and 2025.
Elevated prices for goods and services mean households should carefully monitor discretionary spending like dining out, which has dropped significantly since 2019. Consider reviewing your budget to accommodate the 3.7% inflation rate and discuss your long-term financial security with a professional.
The takeaway
The combination of stagnant wage growth and rising costs is changing how Americans manage daily expenses and business-related spending. Track your own household cost-of-living adjustments by reviewing monthly grocery and utility expenditures against your current wage trajectory.
Further reading
For more information on how national trends influence household financial security, visit Employment.
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