Concerns about rising inflation, especially in housing and food costs, have jumped, doubling the fears of just three years ago, according to a groundbreaking “Inflation Index” survey provided to Secrets.
In the new Zogby Poll, the inflation that the public perceives has increased 10%. That is double what was felt in 2018.
Zogby Analytics pollster Jonathan Zogby told us, “Americans’ fear of inflation continues to rise. On a scale 1-10, where one stands for ‘not at all afraid’ and 10 for ‘terrified,’ average fear of inflation this year was 6.2, compared to last year’s 5.9. Republicans and Donald Trump voters, as well as baby boomers and Generation X, are most worried about inflation.”
Inflation has actually increased to 5%, with the consumer price index at an adjusted 5.4%, according to the Bureau of Labor Standards.
U.S. home prices grew at a record annual pace in May, rising almost 17 percent from 2020 amid tight supply and rabid demand, according to data released Tuesday.
The S&P CoreLogic Case-Shiller price index for U.S. homes rose 16.6 percent in the 12 months leading into May, surpassing the record 14.8 percent annual rise seen in April. All 20 cities tracked by the index saw higher annual price growth in May than the previous month, and prices reached all-time highs in 18 of those cities.
“A month ago, I described April’s performance as ‘truly extraordinary,’ and this month I find myself running out of superlatives,” said Craig J. Lazzara, a managing director at S&P Dow Jones Indices.
- 59% of registered voters hold Biden’s economic policies responsible for the 13-year high in inflation in the United States, compared with 53% who point to Americans’ return to pre-pandemic behaviors.
- Expectations for price increases in travel, used cars and home improvement have grown significantly from the beginning of the year, per Morning Consult Economic Intelligence data.
- Nearly 2 in 5 voters expect the U.S. economy to get worse in the next year, including 61% of Republicans and 38% of independents.
According to federal data, the average American’s wage is on the decline due to inflation.
The Bureau of Labor Statistics found that “average hourly earnings” in the United States rose from $29.35 in June 2020 to $30.40 in June 2021 — a 3.6% increase. However, when factoring in inflation — specifically through the Consumer Price Index, which has risen by 5.3% since June 2020 — “real average hourly earnings” have diminished by 1.7% over the past year, despite a robust economic recovery during the same period.
For an American earning $50,000 per year, the agency’s findings imply the equivalent of an $850 cut in yearly wages.