Inflation Remains Top Concern for Americans Amid Declining Rates

Inflation Remains Top Concern for Americans Amid Declining Rates

According to recent polling, inflation is perceived as the greatest threat to the U.S. economy. Seven out of ten Americans are concerned about increasing costs. As you can see, the issue has really resonated – with tons of national attention. While inflation rates have receded from their highs, the average consumer is still experiencing the overall cost burden. The survey results show clear differences of opinion by party, but illustrate how economic anxiety has affected Americans of all walks of life, across the political spectrum.

When previously couched as choosing the single most important economic threat, inflation rose to the top as the biggest danger. It was picked out by only 31% of Republicans and 33% of independents. For Democrats, their number two concern was inflation at 29%, second only to tariffs. This repeated focus on inflation establishes the outsized role inflation plays in the public discussion of what it means to be economically stable.

Since the end of pandemic-related supports, inflation has skyrocketed. Consequently, Americans across the country are beginning to feel like their wages just aren’t cutting it with inflation impacting their bottom line. In 2022 the inflation rate quickly climbed above 9%. As of August, it has subsequently fallen back to an annualized rate of 2.9%. Although this decrease is welcomed, it is still considerably higher than the Federal Reserve’s goal of 2% and adds to the continuing economic disquiet.

It can’t be overstated how eye-opening the polling data is. An astounding 74% of our survey’s respondents reported that their typical monthly household costs have increased by $100 or more. Participants overwhelmingly said that their monthly expenses increased by $100 to $749. This large turnout is reflective of an incredible mobilizing effect across varied demographics and ideological lines. It’s because Democrats, Republicans and independents are equally likely to be hit with these price increases. This is a significant indication that the issue spans beyond partisanship.

When debating the causes behind these price hikes, findings reveal a sharply polarized view between political affiliations. Approximately 45% of Republicans think the increases are merely routine annual adjustments due to inflation. That’s a significant partisan divide. Only 22% of Democrats and 27% of independents feel the same way. This partisan divide reflects a fundamental ideological divide on government accountability and economic policy.

Additionally, nearly one in five respondents, regardless of political affiliation, indicated that companies are price gouging consumers to boost their profits. This belief—that government policy today is causing prices to rise—was shared by 55% of Democrats and independents across the board. This feeling represents a growing distrust of government economic policy.

Even with inflation moderating in recent months, households across the country are continuing to lose faith in where the economy is headed right now. A majority—53%—say economic conditions are getting worse, a significant jump from 48% who thought so a year ago. For Republicans, the share that is pessimistic has climbed to 41%, with Republican optimism stuck at a little over 30%. One reason for this hesitation to adopt an upbeat interpretation is a palpable sense that future economic prospects are becoming more perilous.

The impacts of inflation go far beyond direct financial costs. They raise larger issues of economic resilience and effectiveness of policy. We know that tens of millions of Americans are under the pressure of acute rising prices. They’re looking for answers that address deep-rooted economic problems, not band-aid solutions.

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