Consumer prices have seen their biggest year-over-year increase since 2008 as even some Democratic economists, such as former Treasury Secretary Larry Summers, worry about massive new spending overheating the economy. A New York Federal Reserve Bank survey found inflation expectations hitting a new high.
An Economist/YouGov poll also found that 42% of adults consider prices of goods and services to be the most important economic indicator, compared to 25% who picked unemployment and jobs reports. This is a stunning reversal from the same numbers in January.
Former President Jimmy Carter can tell Democrats what kind of impact inflation can have on their electoral fortunes. “Aside from the structural issues like redistricting, which is a massive hurdle for them in the House, inflation looms over their prospects in a massive way,” said GOP strategist Matt Gorman, a former communications director for the National Republican Congressional Committee. “It's essentially a tax on the middle class. Combine that with actual taxes they want to raise, and you have a recipe for an uphill climb in 2022.”