Virginians Believe Inflation Is 3 Times Higher Than Reality: Analysis

VIRGINIA — Regardless of how much the prices of day-to-day expenses like groceries, gas, and clothing have increased, Virginians believe inflation is three times worse than data shows, according to a new analysis.

Credit advice website CardRates.com recently surveyed 3,000 people from various places in the United States and asked them what the current rate of inflation feels like to them. According to the analysis, many Virginians think the inflation rate feels like 6.9 percent.

The actual inflation rate is much lower. In fact, the current annual rate is 2.5 percent — the lowest it's been in three years, the analysis states.

"Our survey reveals that while inflation may have eased on paper, consumers are still feeling the pinch in their day-to-day lives," said Jon McDonald of CardRates.com. "This perception gap between actual inflation and what Americans feel is driving significant changes in spending habits, as people prioritize essentials and look for ways to cut back on discretionary expenses."

When the survey responses were broken down by state, researchers discovered Maine residents feel the inflation rate is at a staggering 8.6 percent. On the flip side, Kansas residents perceive a lower inflation rate at 5.5 percent.

These are the states where residents feel the inflation rate is highest:

1. Maine – 8.6%
2. Colorado – 8.1%
3. Nebraska – 8.0%
4. Connecticut – 7.8%
5. Delaware – 7.8%

And these are the states where they feel it's the lowest:

1. Kansas – 5.5%
2. South Dakota – 5.7%
3. North Dakota – 6.0%
4. Wyoming – 6.0%
5. Montana – 6.4%

CardRates.com also asked Virginians how often they think about inflation when making financial decisions. Nearly half, or 42 percent, said all the time, while 34 percent said frequently. Only 4 percent said they never think about rising prices.

The survey also asked respondents what they would cut back on first if inflation became worse. More than a third said dining and entertainment would be the first to go, followed by travel and vacations. Subscription services would be cut back by 16 percent while another 16 percent of respondents said they would also cut back on retail shopping.

See the full analysis at CardRates.com.