CPI Report: Nobody Believes Inflation Numbers Reflect Real Price Increases
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Key Takeaways
- Following February’s CPI report, Americans are skeptical that reported inflation numbers reflect their real cost increases.
- Most voters agree that U.S. cost of living is becoming unbearable, but they disagree on what’s causing soaring prices.
- The Biden administration continues to blame corporations and the ultra-rich, rather than its own fiscal policies.
Our Methodology
Demographics
All Voters
Sample Size
15,000
Geographical Breakdown
National, Swing States
Time Period
7 Days
MIG Reports leverages EyesOver technology, employing Advanced AI for precise analysis. This ensures unparalleled precision, setting a new standard. Find out more about the unique data pull for this article.
Americans seem doubtful that February’s CPI report claiming 3.2% inflation accurately captures the rising costs they face day-to-day. Many voters say the real cost of living is much higher than what the CPI suggests. They cite increasing prices in housing, healthcare, food, and education, which they feel aren't accurately reflected in the index.
Pain Points for Everyday Citizens
Despite Democrats historically being vocal against the wealthy class gaining unfair advantages, this sentiment is now growing among all Americans. More voters identify the political class as among the “wealthy” and see elites as the primary beneficiaries of the current tax system.
- Republicans tend to be very negative on the current state of the economy, pointing to life during the Trump era as more affordable.
- Sentiment towards Trump on inflation is slightly higher than sentiment towards Biden among all voters.
- Trump averaged 47% support on inflation over the last week compared to Biden’s average of 44%.
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- In swing states, Trump also maintained a 47% average approval on inflation to Biden’s 44% and an overall sentiment of 43%.
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While most voters admit that costs have increased across the board, there are particular areas they say they’re feeling economic pain.
The cost of housing is a common complaint for all Americans – gaining bipartisan discontent. People would like to return to pre-COVID housing affordability. They point to the idea that there should be a 41% drop in home prices and a 69% increase in incomes to reach previous affordability levels.
Food prices are another subject of concern. Many online are skeptical of Biden administration promises to lower them. For both food and housing, there seems to be a common perception that times were “better” or “easier” during the Trump administration.
- U.S. Bureau of Labor Statistics data shows that inflation has risen significantly in the last four years, still not coming down to the target rate of 2%.
- The cost of cars, housing, and food are also shockingly high in the last several years.
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What Americans Say is Causing Inflation
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A common sentiment among left-leaning voters is that corporations and the wealthy are not paying their fair share of taxes. The Biden administration has recently been claiming that “shrinkflation” unfairly perpetrated by corporations is to blame for American dollars barely putting food on the table. Many Democrat voters seems to sympathize with this explanation – although most are still extremely unhappy with the reality of rising costs.
Biden supporters tend to argue that tax burdens are shifted onto the middle and lower classes, thereby increasing their cost of living. Some are also vocal in the belief that immigrants contribute significantly to the economy through taxes, contradicting the stereotype that they're a drain on resources.
Right-leaning voters frequently criticize the government for excessive spending. They argue spending is a bigger cause of higher taxes and increased cost of living for citizens. They believe taxes should be cut and government spending should be severely curbed.
Unlike some vocal progressive voters, most Republicans and some moderates believe that illegal immigrants are an unacceptable cost to the U.S. economy and the average taxpayer. They point to housing, food, and other services provided to illegal immigrants as unwanted and unauthorized by voters.
Taxes and inflation are among the top issues Democrats and Republicans discuss as important. Sentiment on the economy is slightly higher among democrats, but they discuss it more, with Republicans placing more emphasis on border security.
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Regardless of political affiliation, voters seem to agree the cost of living has noticeably risen and many struggle to make ends meet. There’s a general sentiment often attributing financial difficulties to low wages and high taxes.
Americans Blame the Government for These Difficult Times
Many voters reiterate their belief that spending money on people who don't generate income or pay taxes – like illegal immigrants – is not a feasible solution to American economic pain. They argue for a system where people who make money and employ others keep more of their earnings, allowing them to invest, hire, and thereby stimulate the economy. These voters blame rampant spending on the government, resisting calls for higher tax revenue to ease economic burdens.
There is a recurring belief that the government's actions, such as printing money, are contributing to the devaluation of the currency, which in turn leads to inflation. Many voters also attribute high inflation to President Biden's policies and actions.
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