As Americans head to the polls for the 2026 midterm elections, inflation remains a top concern, overshadowing other issues. Despite promises from President Donald Trump to lower prices, inflation has persisted, with general prices rising faster than wages. The University of Michigan’s Survey of Consumers found that 55% of respondents feel worse off financially than a year ago, mirroring sentiments from past economic crises. Meanwhile, 65% blame Trump’s policies for the rise in prices, while 44% still hold former president Joe Biden responsible.
The U.S. has struggled to control inflation, which hit a 40-year high of 9.1% in 2022 before easing slightly. However, it surged again in recent months, reaching 3.7% in September due to factors like Trump’s tariffs and the ongoing war with Iran. The Federal Reserve raised interest rates to a range of 3.75 to 4% in September, defying Trump’s calls for lower borrowing costs. Economists expect further rate hikes in the coming months.
Inflation is outpacing wage growth, eroding Americans’ purchasing power. In September, average hourly wages grew by 3%, below the inflation rate of 3.7%. The cost of living has also increased significantly, with mortgage rates jumping to 7.36% in October and gas prices rising by 45% since the start of the U.S.-Iran conflict. High gas prices have historically hurt incumbent governments during elections, as seen in Jimmy Carter’s 1980 loss.
Other areas feeling the pinch include housing and vehicle prices. New vehicles cost 22% more on average than six years ago, though tariffs on the auto industry have had a minimal impact. Grocery prices have also risen, with 44% of Americans reporting trouble paying for basic necessities. The midterm elections will serve as a barometer for public sentiment toward Trump’s economic policies.