Tariff and Inflation – How Does Inflation Impact Consumer Spending in Indiana?

Inflation affects every dollar Hoosiers earn, spend, and save. When prices rise across the board, budgets tighten — and the effects ripple into daily life, from filling up the gas tank to managing household debt. In 2024 and 2025, inflationary pressures driven by both global supply disruptions and new tariff policies have reshaped how consumers in Indiana think about their finances. This blog breaks down how inflation and tariffs are impacting consumer spending in Indiana, how this relates to personal debt, and what you can do to stay financially resilient during these shifts.

Inflation measures how much prices increase over time. In Indiana, like much of the country, the cost of groceries, rent, gas, and other essentials has climbed steadily over the past several years. The March 2025 Economic Review from the State of Indiana shows a moderate cooling in inflation statewide, but many categories remain above historical averages. Energy costs, for example, remain volatile, and food prices are still elevated compared to pre-pandemic levels.

As inflation rises, the purchasing power of a dollar decreases. This means Hoosiers must spend more on basic needs, leaving less available for savings, emergency funds, or discretionary expenses like travel, entertainment, or even long-term investments like education.

Indiana’s economy has shown resilience, particularly in regions like Indianapolis, Fort Wayne, and Evansville, where job growth remains steady. But wage growth has not always kept pace with the rising cost of living. The result? More residents are using credit cards to cover essentials — and more are falling behind on payments as inflation continues to stretch household budgets.

Debt tends to rise in an inflationary environment. When people can’t afford their monthly bills, they turn to credit to bridge the gap. According to the Federal Reserve Bank of St. Louis, household debt nationally reached record levels in 2024, and Indiana is no exception.

Here are several ways inflation is tied to personal debt in Indiana:

• Rising Credit Card Balances: Higher living costs mean people rely more on credit, increasing the average balance and accruing more interest.
• Higher Interest Rates: To fight inflation, the Federal Reserve has raised interest rates. That means higher payments on variable-rate debts like credit cards and some loans.
• Loan Accessibility: Tighter lending standards during inflationary periods can make it harder to refinance or consolidate debt.

Indiana households are also seeing growing stress over medical bills and vehicle loans. Inflation pushes up service and parts costs, driving up repair bills and making car ownership more expensive overall.

In 2024 and early 2025, new tariff policies introduced under the administration of President Donald Trump focused heavily on imported goods from nations such as China. While the intention behind these tariffs is to protect American manufacturing and reduce trade deficits, they also come with near-term consequences for consumers — especially in states like Indiana.

Indiana’s economy is deeply connected to global trade, especially in the manufacturing and agricultural sectors. Tariffs can lead to higher prices for imported raw materials, which raises the costs of finished goods. When businesses pay more for inputs, that cost is often passed along to consumers.

Some areas where Hoosiers are seeing direct impacts from tariffs include:

• Automotive Costs: Indiana is a major hub for auto manufacturing. Tariffs on foreign auto parts increase the cost of repairs and new cars.
• Agricultural Equipment: Farmers in rural Indiana counties are paying more for equipment due to increased import costs, affecting food production and pricing.
• Household Goods and Electronics

If rising prices have pushed you deeper into credit card debt, made it harder to manage loan payments, or caused you to fall behind on obligations like medical bills or car loans, you are not alone. Inflation and tariff-driven price increases affect people at every income level. But there are legal solutions available — and Brock Legal is here to help you understand them.

Zach Brock, founder of Brock Legal, LLC, works closely with individuals and families across Indiana to provide clear, practical strategies for regaining financial control. Whether it’s exploring bankruptcy options, negotiating with creditors, or helping you navigate debt-related lawsuits, our goal is to help you stabilize your finances and move forward with clarity.

Some of the ways we help Indiana residents manage inflation-related debt include:

• Chapter 13 Bankruptcy: This allows you to reorganize your debt into manageable monthly payments while keeping your home, car, and other assets. It’s often a good fit for those with regular income struggling to keep up with rising expenses.
• Chapter 7 Bankruptcy: For individuals overwhelmed with unsecured debt like credit cards or medical bills, Chapter 7 can offer a clean slate and a fast route to financial relief.
• Debt Defense and Creditor Negotiations: We help clients challenge unlawful collection practices, deal with repossession threats, and negotiate fair repayment terms.

We understand how difficult it can be to ask for help — especially when it feels like you’re just trying to keep up. That’s why we offer a compassionate, judgment-free environment where every client is treated with dignity and respect.

If inflation, rising interest rates, or tariff-related price hikes have created financial strain in your household, you’re not without options. Legal support could make all the difference in protecting your income, assets, and peace of mind.

Brock Legal, LLC offers virtual consultations and flat-fee pricing, making access to an Indiana bankruptcy attorney more affordable and flexible than ever. You don’t need to face the stress of mounting debt alone.

💻 Visit indyfinancelaw.com to book your free consultation and take the first step toward financial peace of mind.
📞 Call: (317) 203-9098
📍 Serving clients across Indiana, including Indianapolis, Greenwood, Muncie, and surrounding areas.