by Anthony Murphy and Isha Parmar
Federal Reserve Bank of Dallas
Despite consumer price inflation falling considerably since peaking in 2022, household inflation-related stress and concern remain elevated, having dropped only slightly.
Although most economists and policymakers tend to focus on the decline in inflation (the change in prices), a large share of households—especially low-income households—remain focused on still-elevated prices and the resulting difficulties paying expenses.
More than four in 10 households (45 percent) reported feeling highly stressed by rising prices in third quarter 2024, little changed from 47 percent in third quarter 2022. The incidence of high concern about anticipated inflation in the upcoming six months remained elevated at 57 percent of households in third quarter 2024 compared with 61 percent in third quarter 2022.