Lingering consumer anger over high prices is hurting politicians in advanced economies even though inflation is subsiding to normal levels. Discontent over the economy was a key motivator in this year's US election, contributing to Vice President Kamala Harris's defeat at the hands of Donald Trump. Incumbents in

countries including the UK and Japan have also suffered in elections this year partly because of anger at high living costs. And polling suggests the legacy of inflation will also play a role in national elections next year, including in Germany and Canada. On one level, this might seem surprising given

the average inflation rate across the OECD countries is now at its lowest level since the summer of 2021. But the level of prices remains far higher than before the pandemic, and this matters to consumers. Average price levels across the OECD were approximately 30% higher

in September 2024 than they were in December 2019, just before the pandemic. Food prices are about 50% higher than in December 2019, and while wages are now growing at a faster pace than prices, real incomes in many large economies

have only just surpassed pre-pandemic levels. Small wonder that consumer confidence remains below pre-pandemic levels in so many countries. All this is taking a toll on many governments' political fortunes.

Consumer anger over high prices piles pressure on politicians | FT #shorts

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