Recent polling reveals that many Americans perceive inflation to be much higher than it actually is, creating a significant gap between economic reality and public sentiment. This discrepancy could pose challenges for Vice President Kamala Harris in her upcoming electoral campaign.
According to data from the Bureau of Labor Statistics released on August 14, inflation stood at 2.9 percent in July. Yet a YouGov report published later indicated that only 31 percent of respondents believed inflation was within the 2 to 4 percent range, while two-thirds thought it was much higher.
Alarmingly, 11 percent of those surveyed estimated inflation to exceed 16 percent. The last time the U.S. inflation rate hit such highs was back in 1980, reaching 14.8 percent. For context, the highest recorded inflation was 23.7 percent in June 1920.
Inflation and economic conditions remain top priorities for voters ahead of the November elections.
In an earlier YouGov poll from August, 24 percent identified inflation and prices as the premier issue, followed closely by 13 percent who pointed to jobs and the economy.
This poses a valid concern for Harris as she prepares to face off against former President Donald Trump.
While the broader U.S. economy is performing well globally, as noted by observers, Biden’s efforts to bring down inflation are advancing, albeit slowly. However, rising costs at gas stations and grocery stores could provide Trump with a chance to criticize the administration’s economic approach.
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Republicans are poised to launch broad attacks, while Harris and her team need to outline concrete plans to tackle price gouging, make healthcare more affordable, and reduce living costs.
Despite promising macroeconomic indicators, if Democrats can’t demonstrate positive impacts on individuals’ lives, they risk opening themselves up to strong GOP criticisms.
As Iwan Morgan, Emeritus Professor of United States Studies at University College London, emphasizes, inflation remains a pivotal election issue. High prices for essentials like food and gas continue to strain many American households, prompting skepticism about control over inflation. Harris will need to reassure voters about future improvements in the economy to enhance her chances.