Inflation, Uncertainty Remain High in Latest WSJ/NBC Poll

Americans are still plagued by concerns over the economy and inflation falls surprisingly high on that list of worries.

The latest WSJ/NBC News survey showed that 25% of respondents said savings are the number one concern for their families. But a close second, at 21%, was inflation. (Click here for the full story.)

The survey, conducted Dec. 5-8, comes just a few weeks after the news that October’s seasonally adjusted consumer price index fell 1% from September — its largest dive since the government started using seasonal adjustments in February 1947. And while inflation still exists for now, consumer prices are expected to continue falling.

So why worry? Much of it could simply be the fear of inflation returning at full force while families struggle through the economic downturn. Asked whether they are worried about inflation in the next year, 56% said they were very concerned. Asked the same about deflation, 47% said they were very worried.

The poll, which has a 3.1 percentage point margin of error, showed Americans are pessimistic about the current economy but still optimistic for the future. Over the past 12 months, 90% say the economy has gotten worse. But in the next 12 months 36% expected it to improve, 34% thought it will stay the same and 28% said it would get worse.

The number one issue facing the economy at large is unemployment, 36% said. The federal budget deficit was a not-so-close second at 12%.

Turning to the buffet of bailouts, 46% of people said they approved of the auto bailouts whereas 42% disapproved. While that could be good news for lawmakers who are moving closer to a deal, it should be taken with a hint of caution.

Back in October, 40% approved of a financial bailout now known as the Troubled Assets Relief Program, compared to 38% who disapproved. But in the latest survey just 27% approved of the program compared to 50% who didn’t.

Despite deep anxiety about the recession, respondents said, by 20 percentage points, that they are more concerned that the government will spend too much money trying to boost the economy and as a result will drive up the budget deficit, compared to those who worried the government would spend too little money and prolong the recession. –Sara Murray