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Consumer Anxiety Rise as Inflation Unevenly and Slowly Retreats

High inflation is slowly declining, but remains a growing concern for consumers.

A number of recent surveys show growing economic anxiety among Americans, and they all cite the same problem. That is the rising cost of living.

Americans cited the cost of food (22%) as their top concern, with retirement savings (18%) and health care (17%) being the top three concerns, according to a Quinnipiac University poll released Thursday. I am closing the matter. More than six in 10 of her Americans say they’re cutting back on everything from eating out to home remodeling his projects.

“Sustained inflation, rising interest rates and volatile stock markets are likely causing concerns about everything from food procurement to medical care,” said Osman Kilic, a professor at Quinnipiac University Business School. rice field. “There is one silver lining for him. Concerns about losing his job are at the bottom of the list.”

About 3 in 10 respondents say the economic climate has delayed their purchase of a car, home or other major purchase.

Economic uncertainty has gotten so bad that more Americans are telling Fox News pollsters they would rather keep $10,000 windfall under their mattress than invest in the stock market. I’m here.

Inflation around the United States rose at an annualized rate of 6% in February, triple the Federal Reserve’s 2% target. Many economists are also concerned that interest rate hikes, the Federal Reserve’s bailout against rising inflation, are likely to trigger a recession later this year or early 2024.

Overall inflation eased last summer from a 40-year high of 9.1%, but prices for many commodities are still well above the national average for the Consumer Price Index. Year-on-year, egg prices increased by 55%, breakfast cereals by 12.5%, chicken by 8.8%, hot dogs by 11%, juices by 11%, salad dressings by 18.4%, and baby food and formulas by 9.8%. increase.

Gas prices are down 2% from February 2022 to last month, while TV prices are down 14.8%, according to the Bureau of Labor Statistics. However, the cost of tools and outdoor gear rose 11.8%, paper goods rose 10.8% and pet food rose 15%.

A survey by The Wall Street Journal and University of Chicago’s NORC last week found that a majority viewed inflation as a ‘major concern’ (65%) and the economy as ‘bad/not very good’ (80%). became clear. Not confident (78%) are confident that the next generation will be better.

When asked what they thought would happen to the economy next year, 47% said it would get worse. Only 15% said the economy would “get better.”

According to the Associated Press-NORC Center for Public Affairs Research, about half of U.S. adults in households with annual incomes of less than $60,000 and about four in 10 adults in households with incomes between $60,000 and $100,000 have an individual said they are feeling a lot of economic stress.

About three-quarters of adults across all income groups say their household expenses are higher than they were a year ago.

Households earning less than $100,000 a year are more likely to report having more debt than higher-income households. The vast majority of people facing increasing debt and spending cite their financial situation as a major source of stress.

Republicans and Democrats in Congress are bitterly divided on how to keep inflation under control.

On Thursday, the House of Representatives passed a vast Republican-backed energy package in response to soaring energy prices. The Energy Cost Reduction Act will overhaul the environmental review process for energy projects, streamline approvals, encourage fossil fuel production and lower prices.

Louisiana Republican Rep. Steve Scales said, “Let’s stand up for families who know we have the ability to do it ourselves but are tired of paying more. “We will be energy independent again. This is a matter of national security, but for struggling families, it’s a bread and butter kitchen issue.”

Democratic leaders emerged from Thursday’s White House meeting to defend the expected effects of last year’s $1 trillion infrastructure bill. Maryland Democratic Rep. Steney Hoyer, when asked if she was worried the spending would lead to inflation, responded: [$750 billion] That’s what anti-inflation laws are designed for. ”

Both parties know that consumers are not feeling much relief from inflation.

According to a recent study by personal finance website WalletHub, consumers will piling up $180 billion in new credit card debt in 2022. The average household credit card balance was $9,990, up 9% from Q4 2021.

A Wall Street Journal/NORC poll found that 44% of respondents said their financial situation was worse than expected at this stage in their lives. Only 17% said their financial situation was in “better” than expected.

• Part of this article is based on news agency reports.



https://www.washingtontimes.com/news/2023/mar/30/consumers-worries-sky-high-inflation-recedes-uneve/?utm_source=RSS_Feed&utm_medium=RSS Consumer Anxiety Rise as Inflation Unevenly and Slowly Retreats

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