close video We’re looking at this election through the lens of the economy: Megan Leonhardt
Barron’s senior writer Megan Leonhardt discusses the market selloff following the ABC News Presidential Debate and the expected pullback in the U.S. economy.
The economy is the top issue for voters as Election Day on Nov. 5 draws near and Americans continue to deal with the economic impact of inflation on the cost of living.
The presidential debate led off with ABC News moderator David Muir asking Vice President Kamala Harris whether Americans are better off than they were four years ago when it comes to the economy. Harris opted against directly answering Muir's question and instead discussed her background and elements of her economic plan.
Americans have struggled with the impact of inflation on their household budgets in recent years. Inflation surged to a 40-year high of 9.1% in June 2022 due to the impact of supply chain disruptions related to the COVID-19 pandemic and elevated government spending aimed at mitigating its impact.
Though the rate of inflation has subsided to 2.5% as of August 2024, Americans' budgets are still stretched due to the price increases that have occurred in the last few years. Compared with four years ago, in August 2020, when the country was in the midst of the pandemic and before inflation accelerated, prices are up just shy of 21%, according to FOX Business calculations.
INFLATION RISES 2.5% IN AUGUST, LESS THAN EXPECTED
Food prices have strained Americans’ household budgets in recent years. (Frederic J. Brown/AFP via / Getty Images)
Here's a look at how the prices of key goods and services used by American households have changed as of August of this year compared with August 2020.Food/Groceries
Overall, food prices have risen about 22.8% in the last four years, based on a FOX Business analysis. That figure is roughly in line with the rise in meat prices in that time span, which are up nearly 22.6% since 2020.
Egg prices have skyrocketed more than 60.7% since August 2020 — due in part to an outbreak of avian influenza that impacted production in 2022, as well as rising costs for feed, energy and labor.
Other food categories have seen more modest price growth in the last four years, as dairy products are up 16% while fruits and vegetables are up about 13.8%.
COST-OF-LIVING CRISIS KICKS OFF THE HARRIS, TRUMP DEBATE
Gas prices have risen by more than 50% in the last four years. (Daniel Acker/Bloomberg via / Getty Images) Shelter
Shelter prices have increased nearly 23.4% since August 2020, with rents for primary residences up by a similar amount. Energy
Overall energy costs have increased about 42.4% over the past four years, with fuel oil spiking 70.3%.Vehicles and Gas Prices
New vehicles are up 19.5%, while prices for used cars and trucks have risen over 17.9% since August 2020. Auto insurance prices have surged by nearly 52.4% since that time.
Overall price increases for gasoline have risen nearly 52.9% in the last four years.
AMERICANS' TOP ECONOMIC CONCERNS AHEAD OF THE TRUMP VS HARRIS PRESIDENTIAL DEBATE
Health care costs have risen in the last four years. ( / iStock) Health Care
Health care costs have increased at a slower rate than other categories, as prices for medical care services are up about 7.4% since August 2020, although prices for hospital services are up more than 17.8%.Education
Prices for education and communication services — a category that includes tuition and fees for various levels of schooling as well as internet, telephone and postage services — are up about 7.9% compared with four years ago.
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Airline fares have risen nearly 21.7% since August 2020.