California families feel the brunt of inflation, significantly shaping their economic outlook. Despite the U.S. economy showing low unemployment rates, many Americans remain pessimistic due to persistent living cost increases. This economic dissatisfaction is poised to influence the 2024 general election, potentially favoring former President Donald Trump over President Biden.

Dan Walters with CalMatters highlighted that California, with one of the highest inflation rates in the country according to Moody’s Analytics, struggles with already exorbitant housing and living costs. This has led to California having the highest functional poverty rate in the U.S. at 13.2%, nearly 50% above the national average. He also noted that the Public Policy Institute of California (PPIC) reported that a quarter of Californians live in poverty or close to it, with inflation exacerbating their financial struggles.

Inflation has dramatically increased the cost of necessities for low-income households in California. PPIC data reveals that from 2018-2019 to 2024, the average cost for essentials for these households will rise from $26,000 to over $32,000. For higher-income groups, the cost of the same essentials will increase from $82,000 to nearly $100,000. Inflation affects different income levels unevenly, with gasoline up 55% since January 2019. Lower-income households spend much of their resources on necessities, making it harder to cope with rising costs.