Inflation Continues to Dominate Americans’ Financial Concerns, Gallup Poll Shows

WASHINGTON, D.C. – For the third consecutive year, inflation and the high cost of living have emerged as the most pressing financial challenges for American families, according to the latest Gallup poll. In 2023, 41% of respondents cited inflation as their primary financial problem—an increase from 35% in 2022 and 32% in 2021. This marks a significant rise from historical averages, with inflation rarely mentioned by more than 10% of Americans prior to 2022, when it began to dominate discussions, peaking at 18% in 2008. The annual Economy and Personal Finance poll, conducted from April 1 to April 22, 2023, highlights the growing concern among Americans as inflation remains a top-of-mind issue as they face rising costs in several domains of their lives.

Rising Costs in Housing and Other Areas

Following inflation, 14% of survey participants listed the cost of owning or renting a home as their main financial worry, another new high. Other issues that troubled American families included high personal debt (8%), healthcare costs (7%), insufficient income or low wages (7%), and escalating energy prices or gas costs (6%).

Historically, healthcare costs and low wages have consistently ranked high on Americans’ list of financial concerns, while energy costs have garnered attention during times of elevated gas prices, such as in 2005 and 2008. ## Age, Income, and Political Divides

Interestingly, inflation’s impact is viewed through different lenses across various demographic segments. Among older Americans (aged 50 and above), 46% identified inflation as their primary concern, compared to 36% of younger Americans. Wealth also plays a crucial role; 46% of middle-income individuals and 41% of upper-income Americans highlighted inflation, while only 31% of those earning below $40,000 expressed the same concern.

There’s also a notable political dimension to these figures, with 56% of Republicans identifying inflation as a key issue, juxtaposed with 39% of independents and just 26% of Democrats.

The disparity among younger and lower-income respondents may stem from the prioritization of different concerns, such as housing costs. In fact, 21% of adults under 50 cited housing-related expenses as their most pressing issue, whereas only 8% of those aged 50 and above felt the same.

Lower-income Americans frequently name issues such as debt, healthcare, and job loss as their primary concerns, emphasizing the diverse financial landscape faced by various demographics in the country.

Concerns About Maintaining Living Standards

The Gallup survey also examined how much Americans worry about specific financial matters, revealing that 55% are very or moderately concerned about maintaining their standard of living—marking the third straight year that a majority have expressed such worries, following a period from 2017 to 2021 when this figure fell below the majority threshold.

Maintaining living standards ranks highly among economic concerns alongside issues such as inadequate retirement funds and the inability to cover medical expenses in times of serious illness. Since 2001, these problems have consistently occupied the top spots in Americans’ financial anxieties.

Ratings of Financial Health

When asked to evaluate their personal financial situations, 46% of Americans rated their finances as excellent or good. This figure remains unchanged from the past two years, reflecting a less optimistic view compared to 2017 through 2021. Comparatively, 36% of respondents categorized their finances as "only fair," while 17% deemed them "poor."

Despite a slightly optimistic trend—43% of individuals feeling their financial situation is improving, up from 37% in previous years—the reality remains that almost half (47%) believe their financial circumstances are worsening. Among wealth groups, 52% of upper-income individuals perceive improvement, whereas only 34% of lower-income Americans share that sentiment.

Economic Outlook Amid Persistent Inflation

While inflation rates have seen significant drops since their peak in 2022, the perception of economic stress remains largely unchanged. This sentiment reflects the long-lasting effects of elevated prices and the fact that inflation is still above levels seen in the years between 2012 and 2020. Government reports have suggested potential increases in inflation again, which could impact Federal Reserve decisions regarding interest rates and ultimately influence the upcoming election.

The 2023 Gallup poll findings indicate that inflation continues to be an urgent financial issue for families across the nation, significantly affecting how Americans view their financial circumstances. As inflation remains a critical topic in economic discussions, it is expected to play a pivotal role in financial decision-making and upcoming electoral campaigns.

For the latest insights, follow Gallup on X and explore how the Gallup Poll Social Series continues to reflect the evolving economic landscape and the concerns of Americans.

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