Nearly half of American households reported they are directly facing worsening financial hardships due to record-high inflation levels across the US and the rest of the world.
According to the results of a new Gallup poll published on Thursday, soaring prices for food, energy, and other necessities have created direct, negative impacts on approximately 45% of American households. The survey, which consisted of almost 1,600 respondents, revealed that 71% of those making less than $40,000 annually faced substantial hardship from inflation.
Of those with incomes below $40,000, 28% of them said the financial hardship is severe, and as a result they are no longer able to maintain their current standard of living. However, the higher the income level, the less impactful the inflationary effects become. The Gallup poll found that of those making over $100,000 per year, only 30% of them are experiencing the effects of rising price pressures, while half of those classified as middle-income households revealed they are somewhat feeling the negative effects.
The problem of persistent inflation comes just ahead of the holiday season, where families are preparing to spend big on gift shopping. This year, however, their dollars likely won’t go as far: according to the PNC Christmas Price Index— which has tracked the prices of items from the “12 Days of Christmas” song for nearly 40 years— has jumped 5.7% from the same period in 2019.
Although the typical American household likely will not be buying a two turtle doves or five golden rings for their loved ones this holiday season, the index serves as a whimsical take on inflation that has become nonetheless nearly impossible to avoid.
Indeed, skyrocketing inflation has become a significant challenge for both consumers and policymakers, particularly in North America. Rising demand for goods and services has been met with supply chain disruptions, labour shortages, and surging input costs, further driving up prices during a time of unprecedented monetary policies that have exponentially increased the money supply.
Information for this briefing was found via Gallup and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.