US Consumers See Inflation Outpacing Incomes at Highest Rate in Two Years
A new survey shows 72% of US consumers expect inflation to outpace their income over the next year, while only 8% expect income to grow faster than prices.
US consumers are increasingly pessimistic about their real purchasing power, according to survey data highlighted by The Kobeissi Letter. Only 8% of US consumers expect their income to grow faster than inflation over the next year, the lowest proportion in at least two years. That figure has fallen 10 percentage points since November 2024.
At the same time, 20% anticipate their income will grow at roughly the same pace as inflation, near the lowest share since at least July 2024. The combined responses leave 72% of consumers expecting inflation to outpace their income over the next year, the highest reading in at least two years. For comparison, this figure stood at 58% in November 2024.
The shift points to broad concern about household finances and inflation persistence, with most Americans now expecting their purchasing power to weaken over the coming year.
Source: The Kobeissi Letter