How has inflation affected American wallets since 2020?

WASHINGTON (TN) — A new Quinnipiac poll shows that the economy is the most important issue in deciding who to vote for president.

When asked which issue was most important in the presidential election, 32 percent of respondents were given a list of twelve issues, followed by preserving democracy in the United States (25 percent) and immigration (10 percent).

This is not surprising considering the higher prices Americans have had to pay in recent years.

An analysis by the Pew Research Center shows that prices rose 21.8% from January 2020 to June 2024, and the cost of certain goods and services rose even more.

The cost of margarine has risen the most, by 56.8 percent. Car repairs and insurance, eggs, sugar, and beef and veal have become more expensive by more than 39 percent since January 2020.

On the other hand, smartphone prices have fallen by more than 53%. Televisions, men's suits and health insurance are also cheaper than before the COVID-19 pandemic.

Overall, the US is experiencing disinflation. Disinflation is when the inflation rate falls. The current rate is 2.9%, the lowest level since 2021.

If prices were to go down, it would be called deflation. Deflation occurs when the inflation rate is negative. While that sounds good, some experts warn that it would hurt the economy. CNBC reports that deflation can hurt economic growth. When the value of a home goes down, the person makes less profit and has less money to pay off their debts.

The Federal Reserve's goal is an inflation rate of two percent, not deflation.