QI Research CEO and Chief Strategist Daniel DiMartino Booth and UBS Private Wealth Management Managing Director Ally McCartney talk about the Fed’s 2024 inflation plan on How to Make Money.
Americans feel a little better about the situation us economyBut a new Gallup study says high levels of inflation continue to cause economic hardship.
Americans’ monthly assessment of the state of the nation’s economy rose to its highest level in two years in January, although it remains in negative territory, according to survey results released Tuesday.
A majority of Americans (about 45%) rated the current economic situation as bad, but only a quarter said it was good (5%) or good (22%). Another 29% said their financial situation was fair. This is a slight improvement from December, when 22% of adults surveyed rated the economy as “good” or “good.”
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Customers shop at a supermarket on September 13, 2023 in Foster City, California. (Li Jianguo/Xinhua News Agency via Getty Images/Getty Images)
The increased optimism about the state of the economy and its trajectory comes primarily from Democrats, with 54% of them rating economic conditions as good or excellent in January. By comparison, only 8% of Republicans and 21% of independents rated the economy as “excellent” or “good.”
Although Americans’ view of the economy has improved slightly, an overwhelming majority say high inflation continues to weigh on them economically.
Approximately 63% of U.S. adults say recent price increases have caused financial hardship for their families, including some who have lowered their current standard of living, according to data from January 2nd to January. 17% said it was a serious hardship that affected their ability to maintain their employment. . 16 surveys. Only 37% of Americans say inflation is not a problem.
Inflation rate rises faster than expected in December as prices continue to rise
Inflation has fallen significantly from its peak of 9.1% in June 2022, but remains well above the Federal Reserve’s 2% target. And just before that, compared to January 2021, the inflation crisis has begunprices rose by a whopping 17.6%.
caused by high inflation severe financial pressure Most American households are being forced to pay more for everyday necessities like food and rent. Food prices have increased 33.7% since the beginning of 2021, and shelter costs have increased 18.7%, according to FOX Business calculations. Meanwhile, energy prices have increased by 32.8%.
A man shops for meat at a Safeway grocery store in Annapolis, Maryland, on May 16, 2022, as inflation continues to rise and Americans brace for summer sticker shock. (Jim Watson/AFP via Getty Images/Getty Images)
The burden falls disproportionately on low-income Americans, whose already maxed-out paychecks are heavily affected by price fluctuations. According to Gallup, about 76% of low-income households cite high prices as a hardship, compared to 65% of middle-income households and 54% of high-income households.
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The typical American household had to pay $211 more per month in December to buy the same goods and services as they did a year ago. Inflation remains high, according to a separate calculation by Moody’s Analytics. Americans are paying an average of $1,020 more each month than they did during the same period two years ago.
Gallup’s latest poll results come amid continued pessimism about the financial health of U.S. households under President Biden.a recent research According to a study published by Bankrate, 50% of Americans say their financial situation has worsened since the financial crisis. 2020 Presidential Election. By comparison, only 21% believe that their financial situation has improved, while 26% believe that the situation has not changed.
“Views on the economy remain largely negative, especially among Republicans and independents, which could pose a challenge for Mr. Biden as he seeks re-election,” the Gallup poll said.
