Regardless of a slowdown in inflation’s rise, Americans report higher prices are causing financial distress, a new poll finds.
Gallup released polling data on Thursday, which showed 61% of those polled say price hikes have caused financial problems, up from 49% in January last year. That 61% figure is a high for Americans since Gallup began tracking the data in 2021, when inflation grew faster.
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“This may indicate that the cumulative effects of high prices over the past two years have taken their toll on consumers,” Gallup said.
The U.S. Bureau of Labor Statistics released its Consumer Price Index, a key indicator of inflation, earlier this month, showing that consumer prices rose 0.4% in April, contributing to a 4.9% increase over the past year. That figure is about double what most economists believe is a healthy level of inflation.
Those price increases have made it harder for Americans to make ends meet. Energy and food prices in particular have hit Americans hard. The BLS data showed that food prices have increased by 7.7% over the past year.
A separate Gallup bearing found that 35% of Americans see inflation as their family’s top financial problem.
“The cost of owning or renting a home (11%) is a close second to inflation, closely followed by over-indebtedness (9%) and a lack of money or low wages (7%),” Gallup said. “Energy costs, which last year were second only to inflation amid high gas prices, have fallen to 5% as gas prices have fallen.”
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Gallup found that 15% say the hardships of inflation are severe and 46% say it is moderate. Lower-income Americans report even more suffering.
“Three-quarters of American adults with annual household incomes less than $40,000 currently say rising prices are causing them at least moderate hardship, including 29% who say it is severe,” Gallup said. “Meanwhile, 65% of middle-income adults view inflation as a problem, while 15% say it is serious. At the same time, less than half of higher-income adults, 45%, say that price increases have caused them difficulties.”
Syndicated with permission from the Center Square.