Increasing Inflation Continues to be the Top Financial Issue for Americans, According to Gallup

By Jeffrey Jones at Gallup

Annual Gallup Poll Reveals Inflation as the Dominant Financial Concern

For the third consecutive year, the proportion of Americans citing inflation or high living costs as their family's primary financial issue has hit a new peak. This year, 41% of respondents identified this as a problem, a slight increase from 35% last year and 32% in 2022. Prior to 2022, the highest percentage mentioning inflation was 18% in 2008. Inflation was cited by less than 10% in most other readings since the question was initially posed in 2005. These findings are from Gallup’s annual Economy and Personal Finance poll, conducted from April 1-22.

Home Ownership and Renting Costs Rank Second

Gallup has asked Americans annually since 2005 to name, unprompted, the top financial problem facing their family. Inflation has topped the list for the past three years. The cost of owning or renting a home ranks second this year at 14%, a new high for that issue. Other significant problems Americans identify include having too much debt (8%), healthcare costs (7%), lack of money or low wages (7%), and energy costs or gas prices (6%).

Inflation a Concern Across All Subgroups

Inflation is named the most important financial problem by all key societal subgroups but garners higher mentions from certain age, income and political groups. Older Americans (those aged 50 and older) mention inflation more (46%) than younger Americans (those under 50) at 36%. Middle-income (46%) and upper-income Americans (41% of those with an annual household income of $100,000 or more) are more concerned about inflation than lower-income Americans (31% of those with a household income of less than $40,000).

Retirement and Medical Emergencies are Also Worrisome

A separate question in the survey asks Americans to say how much they worry about each of eight specific personal financial matters. Inflation is not one of those issues, but its influence is apparent in the heightened percentage who worry about not being able to maintain their standard of living. Fifty-five percent are very or moderately worried about maintaining their living standards, the third straight year a majority has done so after being below that level from 2017 through 2021.

Personal Financial Ratings Remain Low

Forty-six percent of Americans rate their personal finances as excellent or good, similar to what Gallup has measured the past two years but a worse evaluation than in 2017 through 2021. Meanwhile, 36% describe their finances as “only fair,” while 17% rate them as “poor.”

Financial Optimism Shows Slight Improvement

There has been a slight increase in the percentage of Americans who say their financial situation is getting better -- 43% say this, up from 37% in both 2022 and 2023. The current figure is still significantly below the 52% measured in 2021.

The Bottom Line

Inflation continues to be a significant issue for Americans, which is likely why less than half are positive about their financial situation. In addition to being named the most important financial problem facing their family, inflation also ranks as one of the domestic problems Americans worry most about. The U.S. inflation rate has declined significantly since its peak in 2022, but that has done little to alter Americans’ perceptions of their finances. This could reflect the cumulative effect of higher prices for the past few years and the fact that inflation has remained above the lower rates in the U.S. between 2012 and 2020.

Concluding Thoughts

This data paints a picture of a nation grappling with financial concerns, with inflation at the forefront. It's interesting to see how these concerns vary across different age, income, and political groups. What are your thoughts on these findings? Do you feel they accurately reflect the financial concerns of you and your family? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, every day at 6pm, to stay informed on these and other important topics.