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The Muddled Politics of US Inflation

While today’s inflationary surge is nothing like the hyperinflationary episodes of the twentieth century, its long-term impact may reverberate long after consumer prices stabilize. That is because no other economic indicator has so direct an effect on political leaders’ popularity.

WASHINGTON, DC – Rising inflation has put the United States on edge. While much of the focus so far has rightly been on the pain that price increases inflict on ordinary Americans, many are concerned about the long-term political effects. With polls suggesting that angry voters will likely hand Republicans control of one or both houses of Congress in the US midterm elections next week, today’s inflationary surge may affect US politics long after price pressures ease.

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