Republicans predict only 0.1% inflation rise

Consumers and businesses are increasingly worried about inflation, which is shaping political discussions. A survey from the University of Michigan in March shows a sharp divide between Democrats and Republicans on inflation expectations. Democrats predict a 6.5% rise in prices over the next year, while Republicans believe it will only increase by 0.1%. Most Americans, however, anticipate a sharper rise in inflation. On average, consumers expect prices to jump by 4.9% over the next year, the highest level since November 2022. Just three months earlier, in December 2024, this expectation was only 2.8%. A survey from the Conference Board in February also indicated that Americans expect a 4.8% price increase. Businesses are also preparing for inflation. A recent survey by the National Federation of Independent Business showed a 10-point increase in small business owners raising prices—the largest rise since 2021. Experts point out that this shows a belief that inflation is returning. One key issue is the tariffs set by former President Donald Trump. These tariffs on imports from Canada, Mexico, and China are intended to help U.S. jobs but are believed to raise consumer prices. Trump has claimed these tariffs will not harm American households, stating that the costs will fall on other countries. Despite rising inflation concerns, many Republicans align with Trump’s view. Data shows they expect only a slight increase of 0.1% in prices over the next year, reflecting the significant divide in economic perspectives between the two parties.