Texans are worried about inflation

Most Texans are worried their purchasing power is going to drop over the next year as inflation continues to rise.

Driving the news: The UH Hobby School of Public Affairs and the TSU Barbara Jordan–Mickey Leland School of Public Affairs recently released the results of their survey gauging how Texans feel about inflation.

• The "Texas Trends 2022 – Inflation Expectations" survey, which was conducted in August, included 2,140 respondents ages 18 and older.

Between the lines: Inflation expectations are heavily influenced by individuals' income level and political allegiance.

• Respondents who favor Gov. Greg Abbott expect a higher level of inflation in the next 12 months. Meanwhile, respondents supporting Democratic challenger Beto O'Rourke are more optimistic about future inflation.

What they're saying: "History suggests the same pattern manifests according to which political party has majority control in the country. With President Biden being a Democrat, the theory expects the opposing party — Republicans, currently — to feel the country is heading off course and economic worries are ahead," UH public affairs professor M.C. Sunny Wong said in a statement.

By the numbers: 87% of Texans expect that their real income, in terms of purchasing power, will fall over the next year.

• Nearly 46% respondents think the inflation rate will increase in the next five to 10 years.
• Lower-income households are most concerned with food, energy and general inflation costs.

Yes, but: The majority of respondents earning more than $200,000 believe their purchasing power will grow, canceling out the pain of price rises.

The big picture: Inflation expectations can influence how people choose to spend their money. If people think prices are going to keep rising, they may decide to make a big purchase sooner rather than later. Or they might feel empowered to fight for a bigger raise.

State of play: Gas prices are expected to increase again. The national average is $3.92 per gallon, while the Houston average is $3.21, per AAA as of Monday.

• At 9.5%, inflation in Houston is higher than the national average.
• The Federal Reserve recently enacted its third consecutive 0.75 percentage point interest rate hike, and more are expected.