HOUSTON, Texas (KTRK) — Many Americans struggle to afford basic needs like gas, food, and rent, according to a new Pew Research Center survey.
This comes as inflation hit a 4-month high last month at 3.7%, with the war in Iran continuing to drive up gasoline prices, according to federal government data.
But is this the new normal, or will prices ever go back down?
Daniel Potter, Director of the Houston Population Research Center at the Kinder Institute, told ABC13 that when prices rise, they rarely return to what they were before.
“There’s really no evidence of ever seeing deflation. It’s just sort of inflation gets smaller,” Potter said. “It’s more likely it’ll just stop growing so fast. These are those moments where it’s like, we may be entering into a new normal when it comes to some of the cost and prices of things.”
As far as when prices could start to ease, Potter said the future is uncertain.
“What’s the consensus? Is the consensus we’ve turned the corner and here we go, or is the consensus sort of like, I’m not sure where we are in this. And unfortunately, right now, that’s where a lot of people are in their thinking,” Potter said.
The Pew Research Center’s report found that more than half of survey respondents said they don’t have emergency funds to cover three months of expenses.
But Potter said even just saving $5 to $10 here and there can add up over time.
“If I open that savings account and I start putting money in it,” Potter said. “If I can get $100 into that savings, I am more likely than not to get $500 into that savings.”
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