Inflation is inflicting financial hardship on 56% of Americans, according to a Gallup poll released Tuesday. This is up from 49% in January and 45% in November.
Twelve percent say the adversity they are experiencing is severe, on par with the 10% in recent surveys. However, this jumps to 26% among households with annual income of less than $48,000 and falls to a mere 4% of upper-income Americans.
Severe or moderate hardship is being felt by 74% of lower-income households, up from 70% in November.
Attitudes towards finances also differ by party lines, with 67% of Republicans saying that rising prices are hurting their families, compared with just 44% of Democrats. Fifty-six percent of Independents say inflation is severe or moderate for their family.
Gallup included a new question in the Aug. 1-22 survey, asking people what they are doing to hedge higher prices (see table below).
The most common is reducing spending or spending only on essentials (24%), followed by traveling and driving less (17% each), and buying generic and lower-quality brands as opposed to go-to favorites (12%).
Surprisingly, only 3%, each, are being more careful with their budgets, cutting back on spending and reducing their use of electricity. Two percent are putting more purchases on credit cards.
Eight percent say they are staying at home more, and 7% are looking for a second job or asking to work more hours.
“With high inflation persisting for over a year,” Gallup concludes, referring to the current inflation of 8.5%, “a majority of Americans now say they are experiencing financial hardship from higher prices.
“Lower-income Americans were mainly affected early on—but most middle-income Americans and a substantial minority of upper-income Americans are now feeling the strain of higher prices.”
Steps Americans Are Taking
To Address Financial Hardship
Caused by Price Increases
(Please indicate some of the specific things you are doing to respond to the hardship higher prices are causing your family. Responses are in percentages.)
|
Reduced spending/Spending on essentials only/Buying less
|
24
|
|
Less traveling/Canceled vacation
|
17
|
|
Less driving/Adjusting outings/Using less gas
|
17
|
|
Avoid high-priced goods/Buy generic/cheaper brands/Purchase lower quality
|
12
|
|
Eating out less
|
10
|
|
Buying less food/groceries/Growing own vegetables
|
10
|
|
Staying home
|
8
|
|
Cut down on entertainment/social activities/fun money
|
8
|
|
Looking for new job/second job/Working extra hours/ways to increase income
|
7
|
|
Changed eating habits/Eating less/Changing menus/Home cooking
|
6
|
|
Not eating out
|
4
|
|
Shopping sales/Using coupons more
|
4
|
|
Conserving household utilities/AC/electricity
|
3
|
|
Budgeting more/Careful spending
|
3
|
|
Shopping less/Changed shopping habits/Buying in bulk
|
3
|
|
Comparison shopping/Shop where best prices are
|
3
|
|
Delaying medical procedures/medical appointments/buying prescriptions
|
3
|
|
Delaying big purchases/home improvements/maintenance
|
3
|
|
Cut back on luxury/specialty expenses/discretionary spending
|
3
|
|
Selling things we can/Downsizing
|
2
|
|
Not buying new clothing
|
2
|
|
Increased use of credit cards/personal loans/Incurring more debt
|
2
|
|
Buying less meat, seafood
|
2
|
|
Using savings
|
2
|
|
Canceling services/subscriptions/Shopping for less expensive services
|
2
|
|
Not putting money into savings
|
1
|
|
Using food bank/Applying for assistance
|
1
|
|
Reducing waste/Conserving
|
1
|
|
Asked for help from family members/Share resources with family
|
1
|
|
Other
|
11
|
|
No opinion
|
1
|
Source: Gallup
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