Inflation is forcing Americans to make major changes to their shopping and spending habits, and the majority expect price increases to get worse next year, a new poll has found.
The latest US consumer price data will be released on Friday and is expected to show that annual inflation remained near a 40-year high at 8.2 percent in May – down slightly from the previous month but still four times higher than pre-pandemic levels.
From the grocery store to the gas pump, rising prices are inevitable for most Americans and are taking their toll, especially on working-class families who spend much of their paychecks on basic necessities.
In a new Washington Post-Schar School poll conducted in April and May, 87 percent of Americans said recent price hikes have been a financial drain on their households.
The same proportion said they put more effort into finding the cheapest prices for the products they bought, while 77 percent said they cut back on dining out or entertainment spending.
Inflation is forcing Americans to make major changes in their shopping and spending habits, and the majority expect price increases to worsen over the next year
Shoppers were spotted at a grocery store in San Francisco last month. A survey found that 87% of Americans are putting more effort into bargain hunting because of inflation
The poll found that 66 percent say they expect inflation to get worse over the next year, while just 21 percent expect it to improve and 12 percent expect no change.
Seventy-seven percent of Americans said they are either financially behind or have just enough to sustain their standard of living
In particular, rising gasoline and food prices have hit low-income Americans hardest, and even many middle-class families have been forced to change their spending habits.
April inflation data showed that food prices jumped 10.8 percent last year, the largest annual increase since 1980. Groceries away from home rose 7.2 percent from a year earlier.
On Thursday, average national gas prices hit a new record of $4.97 a gallon, up 62 percent from pump prices a year ago. Twenty US states now average more than $5 a gallon.
According to the National Energy Assistance Directors Association, gas and electric bills now make up about 34 percent of the monthly budgets of the lowest-income consumers, up from 31 percent last year.
“Energy costs are becoming prohibitive,” Mark Wolfe, executive director of NEADA, told Bloomberg.
“We could have serious trouble in this country,” Wolfe said. “Family” budgets are being cut. It’s like they’re being taxed and there’s no end in sight.”
Inflation and rising gas prices have become a key political threat to President Joe Biden and congressional Democrats ahead of the midterms.
But at least among those who responded to the Post poll, many appear to agree with the Biden administration’s message of blaming rising energy costs on corporations and Vladimir Putin.
The Washington Post’s new poll found that 58 percent blamed Biden for a “great” or “good deal” in the recent rise in gas prices, while 72 percent blamed corporate greed and 69 percent blamed Russia.
Most Americans still plan to take a summer vacation, but 61% say gas prices will be an “important factor.”
After two years of widespread pandemic disruption, the vast majority of Americans say they intend to take at least one vacation away from home this summer.
The new poll found that 72 percent of Americans said they will definitely or likely take a vacation away from home this summer.
Of those planning a vacation, 77 percent said they would spend one or more of their summer vacations by car, while 50 percent planned to fly at least once.
Of all Americans, 61 percent said gas prices would be an “important factor” when planning their summer vacation, while 52 percent said the same about airfares.
Industry experts predict the 2022 summer travel season will still be one of the busiest on record – but higher costs could force some families to adjust their plans, perhaps planning shorter trips.
The new Post-Schau poll found that 78 percent of those planning vacations this summer plan to travel within the U.S., 7 percent said they would travel outside the country, and 16 percent had planned both types of trips.
Gas prices are displayed at a BP gas station in Manhattan on June 4th. Of all Americans, 61 percent said gas prices would be an “important factor” when planning their summer vacation
National average gas prices have crept up to $5 a gallon this week
The beach was the most popular planned destination at 64 percent, followed by a mountain or sea trip (44 percent), city (39 percent), national or state park (35 percent), amusement park (22 percent), and cruise (9 percent). ).
Expedia CEO Peter Kern recently told Bloomberg that he expects the summer of 2022 to be “the busiest travel season ever.”
Airlines, hotels, rental car companies and booking sites all reported an increase in demand for their services in the latest corporate earnings.
At the same time, many of these companies are facing a tight labor market and limited volume as they scramble to resume operations and expand after more than two years of low demand due to the pandemic.
According to Tripadvisor, travelers should expect inflation to affect all aspects of travel purchases in 2022, and booking now vs. later can mean locking in better prices.
Hilton plans to continue to revalue hotel rooms “every minute of the day” to limit the impact of inflation on its business, CEO Christopher Nassetta told investors last month.
“As demand has picked up, we’ve certainly been able to do this, and we expect to continue to do so,” he said on the company’s conference call.
Hilton’s average daily rates in the United States were 36.4 percent higher in the first quarter of 2022 compared to the same period in 2021.
According to hotel market data provider STR, average daily rates across all U.S. hotel companies increased approximately 37.7 percent in the first quarter of 2022 compared to the same period in 2021.
Flight prices are also trending upwards this summer, according to travel search engine Skyscanner.
Round-trip flights within the US cost an average of $302 per traveler, which is 3 percent higher in the same period before the pandemic.
Long-haul and ultra-long-haul international flights are up to 20 percent more expensive than in 2019, averaging $797 and $1182, respectively.