3 in 5 Americans now say inflation is causing financial hardship: poll

Three in five Americans now say inflation is causing them financial hardship, an increase from the end of last year despite inflation falling in recent months, according to a new poll. 

A Gallup poll released Thursday showed 61 percent of respondents said recent price increases have caused severe or moderate financial hardship, 6 points higher than the level in November. That includes 15 percent who said the hardship is severe. 

Pollsters found inflation is having the most significant effect on those making less than $40,000 per year, with 29 percent of them saying they are experiencing severe hardship and 46 percent saying they are facing moderate hardship. 

Only 15 percent of those making $40,000 to $99,999 annually said they are having severe hardship, while 50 percent said it is moderate. Five percent of those making $100,000 or more said it is severe, and 40 percent said it is moderate. 

Consumer prices rose by 0.4 percent last month for a 4.9 percent annual rate, the lowest level for inflation since April 2021. Inflation has been consistently falling as the Federal Reserve has raised interest rates to get prices under control. 

But Gallup said in its analysis that the results of the poll might demonstrate high prices for the past two years might be taking a cumulative effect on consumers. Inflation hit a 40-year high of 9.1 percent annually last June before the consistent decreases in the months since then. 

A second poll Gallup released with the first shows 35 percent of Americans mentioned the high cost of living and inflation as the most important financial problem facing their family now, significantly higher than any other issue. The cost of owning or renting a home came in second at 11 percent. 

“The increases in these readings suggest that the recent slowing of inflation has so far done little to provide relief for Americans, and it may take more dramatic changes in prices for the harmful effects of inflation to subside,” Gallup concluded. 

The poll about financial hardship was conducted from April 3-17 among 2,326 U.S. adults. The margin of error was 3 points. 

The poll about the most important financial problem was conducted from April 3-25 among 1,013 U.S. adults. The margin of error was 4 points.