Inflation Remains Top Financial Concern for Americans, Gallup Poll Shows

WASHINGTON, D.C. — For the third consecutive year, inflation and the high cost of living have topped the list of financial concerns for Americans, according to the latest Gallup annual Economy and Personal Finance poll, conducted from April 1 to 22, 2023. This year, 41% of respondents identified inflation as the most pressing financial issue facing their families, a notable increase from 35% last year and 32% in 2022. Historically, before 2022, the percentage of Americans citing inflation as a top concern peaked at just 18% in 2008. ## Inflation Trends Over Time

Since polling on this topic began in 2005, inflation has rarely exceeded 10% in survey results until the recent years marked by unprecedented economic conditions. The recent increase reflects growing concerns about rising prices that have remained a persistent issue for many households.

The survey found that the second most significant financial problem identified this year is the cost of owning or renting a home, which also hit a new high at 14%. Other financial issues affecting Americans include having excessive debt (8%), healthcare costs (7%), low wages or insufficient money (7%), and energy costs or gas prices (6%).

Subgroup Insights

Gallup’s findings reveal that inflation is a primary concern across various demographic groups, though certain segments are more affected. About 46% of older Americans (ages 50 and older) mentioned inflation, compared to 36% of younger Americans (under age 50). Similarly, middle-income individuals (earning between $40,000 and $100,000 annually) noted inflation as a primary concern at a rate of 46%, while 41% of those earning $100,000 or more identified the same issue. Conversely, only 31% of lower-income Americans (earning less than $40,000) cited inflation, indicating that other financial worries, such as housing costs, are more pressing for them.

Political affiliations also played a role in concern levels, with 56% of Republicans naming inflation as their top financial problem, compared to 39% of independents and just 26% of Democrats.

Broader Financial Worries

In addition to inflation, other financial matters weighing on the minds of Americans include not being able to maintain their standard of living. This issue has seen an increase in concern, with 55% reporting they worry about it — a trend observed now for three consecutive years. This reflects a significant uptick from the pre-2021 period when concerns around maintaining living standards dropped as low as 42%.

Healthcare costs and retirement also emerged as critical issues. While worries about medical costs due to serious illness have declined slightly, ongoing fears about not having enough for retirement persist, with 59% of Americans expressing concern.

Personal Finance Ratings

When assessing their personal financial situations, 46% of Americans rated their finances as excellent or good, consistent with findings from the past two years but lower than levels seen from 2017 to 2021. Approximately 36% rated their finances as "only fair," while 17% described their situation as "poor."

Notably, 62% of Americans feel they have enough money to live comfortably, a figure that has gradually declined since 2021. This sentiment is notably higher among upper-income groups (83%) compared to lower-income individuals (37%).

Optimism and Future Expectations

Despite the palpable concerns over inflation, a slight increase in optimism about individuals’ financial situations has emerged. Currently, 43% of Americans believe their financial situation is improving, a modest rise from previous years but still lower than in 2021. However, simultaneously, 47% expressed that their financial situation is worsening — a stark contrast to the perceptions observed two years ago. The disparities in financial outlooks are particularly notable among income groups, with only 34% of lower-income Americans feeling optimistic compared to over half of their upper-income counterparts.

Conclusion

The enduring concern over inflation illustrates the financial stress many Americans face today, shaping their perceptions of personal finances. As inflation remains a pivotal issue, it is expected to play a crucial role in the upcoming political landscape, particularly as the Federal Reserve navigates interest rate policies in response to these economic challenges.

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Related Information

For more details on the Gallup Poll Social Series and specific financial issues facing Americans, readers can find complete data trends and PDF downloads on their website.