Rising inflation in the U.S. is causing acute financial trouble for American consumers, especially in poorer households.
About 45% of American consumers said that recent price increases have resulted in financial issues at home, a new Gallup poll released Thursday found.
And it gets worse. One in every 10 consumers in America said they were facing "severe hardship" due to the sharp hike in prices of everyday goods and services.
About 71% of these households make less than $40,000 in annual income.
"Moreover, 28% of lower-income Americans describe the hardship they are experiencing as severe and affecting their ability to maintain their current standard of living," according to a Nov. 3-Nov. 16 online survey of 1,598 U.S. adults who are members of the Gallup panel.
U.S. consumer price inflation accelerated to the fastest pace in three decades in October, according to the latest data from the Bureau of Labor Statistics.
Consumer prices leaped 6.2% in the 12 months through October, the highest annual inflation rate in more than 30 years.
Federal Reserve Chairman Jerome Powell on Wednesday "reiterated that officials should consider a quicker reduction of monetary stimulus amid elevated price pressures," Bloomberg reported.
Renowned economist Mohamed El-Erian criticized Powell's approach to tackling inflation and said the Fed’s communication process and policy responses have been "lagging realities."
U.S. adults with a college degree (30%) or without a college degree (54%) both experienced money issues either for themselves or their families, Gallup noted in the poll.
Democrats are less likely to admit to having monetary issues caused by inflation than Republicans or independents, the survey also showed.
However, similar percentages of each group said they are facing "severe financial hardship because of higher prices."
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