Inflation continues to be a top-of-mind concern for many Americans, with nearly half the country experiencing hardship, according to a recent Gallup poll.
As the peak of holiday shopping approaches and winter temperatures drive up heating costs across the U.S., 45% of American households report that recent price increases are causing their family some degree of financial hardship. Ten percent describe it as severe hardship affecting their standard of living, while another 35% say the hardship is moderate.
Unsurprisingly, the hardship skews toward those with the lowest incomes.
Lower-income households are most likely to have experienced financial hardship due to price increases. Seventy-one percent of those living in households making less than $40,000 a year say that recent price hikes have caused their family financial hardship. That compares with 47% of those in middle-income households and 29% in upper-income households.
Moreover, 28% of lower-income Americans describe the hardship they are experiencing as severe and affecting their ability to maintain their current standard of living.
While the majority of U.S. adults without a college degree (54%) describe price increases as causing financial hardship for themselves or their family, 30% of those with a college degree say they have experienced the same.
Increases in inflation jeopardize the recovery by triggering higher costs for employers and higher prices for consumers. We’ve reported consumer confidence is waning as the holiday shopping season commences. Further, Washington employers will soon experience several payroll tax increases, adding to the cost pressures from a wage-price spiral.
The next CPI report comes out Friday.