Key Findings

  • A survey sponsored by The Kitchen Table Project shows that rising prices for groceries, gasoline, and other consumer goods have caused "widespread economic stress" among American consumers, regardless of location, political affiliation, age, or gender.
  • Groceries are the top source of financial stress for households, with 67% of respondents specifically citing meat and poultry prices as unaffordable. The project cited a survey of 1,100 registered voters by Global Strategy Group, noting that respondents believe by a nearly 4-to-1 margin that price increases, rather than stagnant wages, are driving the "cost-of-living crisis."
  • "Regardless of the essential involved—groceries, housing, energy, healthcare—respondents are more likely to blame corporate price gouging and wealthy interest groups shaping the economy than regulatory-driven supply shortages," The Kitchen Table Project said in a press release.

Deeper Analysis

These findings echo other survey results from May, when the Iran conflict disrupted oil shipments through the Strait of Hormuz, pushing up gasoline prices and disrupting supply chains.

Inflation accelerated in May to its fastest pace in three years, with data released Thursday by the U.S. Bureau of Economic Analysis showing the Personal Consumption Expenditures price index rose 0.4% month-over-month and 4.1% year-over-year.

Price increases for fuel and other products are more than double the Federal Reserve's 2% inflation target.

"These numbers are too high," Richmond Fed President Tom Barkin said in a Bloomberg interview on Sunday.

"Without further impacts from the federal funds rate, labor market, or other factors to generate deflationary pressure in the opposite direction, it's hard to have confidence in returning to 2%," Barkin said.

Fuel prices have eased since mid-June, when the U.S. and Iran agreed on a framework to end the war.

According to AAA data, the average price of regular gasoline has fallen from $4.39 to $3.86 per gallon over the past month, a drop of 14%.

Correspondingly, the University of Michigan's index released Friday shows consumer sentiment rebounding from historic lows this month.

The index rose 10% in June, with gains across income levels and political affiliations. One-year inflation expectations edged down to 4.6% from 4.8% in May, but remain well above the 3.4% level in February before the Iran war began.

The Kitchen Table Project's survey (including an oversample of 100 independent voters from May 5-7) found that among respondents earning over $100,000 annually, 49% said rising living costs have placed significant strain on their households.

"Beyond groceries, housing, gasoline, and utility costs are also prominent financial burdens," the project said. The project is led by Lael Brainard, former Vice Chair of the Federal Reserve and senior economic advisor to the Biden administration.

Respondents cited tariffs, trade restrictions, and decisions by large corporations to raise prices and increase profits as the top causes of price increases, and noted bipartisan support for government intervention to improve affordability.

In fact, 65% of respondents believe "costs need to come down now—households are struggling, and they need relief they can feel immediately."