Most Americans Expect Higher Inflation in the Next Six Months
Most Americans Expect Higher Inflation in the Next Six Months
(Bloomberg) -- Nearly 8 in 10 Americans expect inflation to increase over the next six months, according to a Gallup poll released Wednesday.
Half of the adults surveyed Jan. 3-16 predicted inflation would go up by “a lot” over the period. When asked about the U.S. economy more broadly, two-thirds of respondents say it’s getting worse, not better.
![Most Americans Expect Higher Inflation in the Next Six Months](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/it1VDNiM2F0E/v0/560x-1.png)
Gallup says respondents have always been more likely to say inflation will rise rather than fall, but the current reading of 79% is the highest in data back to 2001. Still, just 8% of respondents named inflation as the nation’s top problem -- well behind concerns about the government and the Covid-19 pandemic. Even so, that’s the highest share since 1985.
Earlier this month, government data showed consumer prices rose 7% in December from a year earlier, the fastest pace in nearly four decades. The rapid increases have eroded workers’ paychecks and driven up the cost of everyday essentials.
A related Gallup survey, conducted Jan. 3-13, showed 49% of Americans said rising prices have caused hardship for their family. That’s up from 45% in November.
![Most Americans Expect Higher Inflation in the Next Six Months](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iGIDeIgkvW.k/v0/560x-1.png)
Lower-income Americans reported suffering the most from inflation. Two-thirds of U.S. adults with an annual household income of less than $40,000 said they had experienced financial hardship related to recent price increases.
Nevertheless, Americans remain upbeat about the labor market. Some 72% of respondents said it’s a good time to find a quality job, just below the record seen in October.
©2022 Bloomberg L.P.