High costs burden budgets despite cooling inflation
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Inflation has cooled from last year's highs, but prices remain elevated for many goods and services compared to pre-pandemic levels. This is squeezing budgets.
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Wage growth has outpaced inflation for some, but lower income groups tend to face higher inflation rates. Many feel their pay hikes don’t compensate.
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Partisanship affects perceptions - Republicans are more negative on the economy with a Democratic president. But pain from high regular costs like food, gas and rent is real.
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People hate inflation more than the economic impact suggests. Prices rising faster than incomes creates stress even if pay eventually catches up.
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With job market still solid, focus remains on prices rather than jobs. But high costs for essentials like food and gas are very salient, overriding positive employment news.