Inflation continues to weigh heavily on Americans’ minds, coming in at or near the top among economic worries in recent surveys. Whether it merits that level of worry is open for debate.
Inflation topped a recent YouGov/Economist poll on Americans’ biggest concerns, not just for the economy but overall. In a Clever Real Estate survey on consumer sentiment, 94% of Americans listed inflation as a top economic worry.
Powered by Money.com – Yahoo may earn commission from the links above.
Be Aware: 9 Things the Middle Class Should Consider Downsizing To Save on Monthly Expenses
Read Next: 25 Places To Buy a Home If You Want It To Gain Value
While high prices — or at least prices that feel high — continue to strain budgets, not all economists believe that level of concern is warranted. Robert R. Johnson, a professor of finance at Creighton University’s Heider College of Business, advises turning that particular worry meter down for now and seeing how the Trump administration’s economic proposals play out.
“Americans should not fear inflation currently,” Johnson said. “But given the tax cuts advocated by the Trump administration, inflation could be a significant problem longer term. The budget deficit will rise dramatically if Trump’s tax cuts are enacted. Additionally, inflation will be stoked if significant tariffs are in place for any length of time.”
GOBankingRates breaks down the larger worries around the U.S. economy, and whether Americans should be on high alert or not.
Price increases have cooled compared to spikes seen in recent years, though many costs are still higher than they were before the surge. As measured by the Consumer Price Index, inflation rose 2.3% over the 12-month period that ended in April. That’s actually the lowest increase for the all-items index since February of 2021. It’s also down from the 2.4% increase for the 12-month period that ended in March.
Belinda Román, an associate professor of economics at St. Mary’s University in San Antonio, Texas, noted that some level of inflation is always expected, and 2.3% is close to levels targeted by Federal Reserve. Nevertheless many of us have come to define inflation as prices feeling too high, rather than prices increasing significantly.
“A lot of the economy is perception,” Román said. “People may think inflation has run away, when it hasn’t really.”
“We notice it at certain times of year,” she added, citing increasing gas prices as summer draws closer.
Try This: 10 Things the Middle Class Won’t Be Able To Afford in Less Than a Decade
The only item listed more often than inflation in Clever Real Estate’s survey of economic worries? The rising cost of all types of insurance. A whopping 95% of respondents listed increasing insurance costs among their top economic concerns.
Story Continues