Majority of Americans Say Inflation is Causing Financial Hardship

Sep 14, 2022Financial Literacy, News

A recent Gallup poll found that a majority of Americans are facing moderate or severe financial hardship due to inflation-driven price increases. 56 percent of respondents said they are experiencing financial hardship, a number that has steadily increased throughout the last several months, rising from 45 percent in November and 49 percent in January.

Lower income families—those making less than $48,000—are facing similar levels of financial difficulty as last fall, but the poll shows that middle-income and upper-income families are now also experiencing more hardship. Middle income families are those making between $48,000 and $89,999, and upper-income families are those earning more than $90,000 annually.

The Hill noted that since November 2021, the percentage of middle-income families facing financial hardship increased 17 points, and the percentage of upper-income families experiencing hardship rose 12 points. Respondents said they were combating inflation by reducing spending, traveling less, and using less gas.

Inflation dipped slightly when gas prices fell in July, but it still remained high at 8.5 percent, and most Americans still rated the economy negatively. Inflation will most likely be a key determinant in this year’s midterm elections since it is a major Republican critique of the Biden administration.

Republicans are also more likely than Democrats to blame inflation for their financial hardships with 67 percent of Republicans attributing hardship to inflation compared to only 44 percent of Democrats.

The poll surveyed 1,570 respondents between August 1-22 and has a margin of error of 3 percentage points.

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