The fastest inflation in decades is contributing to the bleak view of the US economy by Americans.
Nearly nine in 10 adults say they are at least somewhat concerned about inflation, according to a survey conducted this month for The New York Times by the online research firm. Momentive. Worries about rising prices cross generations, races and parties – 85% of Democrats and 96% of Republicans said they were concerned.
The survey was conducted February 1-7, before tensions over Ukraine and the Russian invasion there led to soaring energy prices.
The fear of inflation is weighing on people’s views on their finances and the economy at large. About 75% of respondents rate the economy as good or poor, and just 28% said they expect their finances to be better a year from now, the lowest percentage in five years that Momentive has done. show survey. When asked to identify the most important problem facing the country, dozens of respondents volunteered for inflation, which was not offered as an option.
This finding is in line with other surveys showing a sharp drop in economic confidence in recent months. Old Michigan’s University consumer sentiment index fell to its lowest level in more than a decade in early February, with a third of respondents voluntarily citing inflation as a concern. The university will release the final data for February on Friday.
“People just hate inflation,” said Michael R. Strain, an economist with the American Enterprise Institute. “They hate inflation in a way that I didn’t understand until last year.”
Consumer pessimism is prominent because most indicators, with the exception of inflation, show that the economy has made significant strides in recent months. The unemployment rate has fallen to 4%, and Strong job growth in January despite a huge jump in Covid-19 cases. Wages are growing at their fastest rate in years.
But only 14% of employed respondents to the Times survey said they’ve received a pay raise big enough to keep up with inflation, down from 33% in December. And people are increasingly skeptical that job creation is. price increases will quickly subside: 76% of respondents said they worry that inflation will “continue for a long time”, up from 70% in December.
https://www.nytimes.com/2022/02/25/business/economy/inflation-americans-worry.html Inflation is a worry for 9 out of 10 Americans polled