In a recent survey by CardRates, Marylanders reported feeling the effects of inflation at nearly three times the actual rate, estimating it at 6.9% compared to the national figure of approximately 2.5%. This perception gap is not unique to Maryland; consumers across the country are expressing similar sentiments despite a significant easing of inflation from its peak of 9.1% in 2022, according to recent data.
This perceived inflation rate among Marylanders reflects broader national sentiments. CardRates surveyed 3,000 Americans to better understand consumer attitudes toward inflation and its impact on spending habits. The findings reveal that Mainers feel the most severe pinch, estimating inflation at 8.6%, while residents of Kansas perceive it to be lower, though still above the actual rate, at 5.5%.
“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. It’s a reminder that while economic data is important, understanding consumer sentiment is crucial to painting the full picture of financial well-being.”
The data shows that inflation is frequently top of mind for Marylanders when making financial decisions, with 42% of respondents saying they think about inflation “all the time,” and 34% indicating they consider it “frequently.” On average, Marylanders reported contemplating inflation around 12 times each month. While most feel the financial strain, a small minority—4%—either don’t worry about inflation or have adopted an optimistic outlook on price stability.
Looking ahead, Marylanders are generally pessimistic about inflationary trends, with 64% expecting inflation to increase over the coming year. A quarter of those surveyed believe it will remain stable, while only 12% predict a decrease in inflation. This cautious outlook appears to be shaping spending decisions, with many residents planning to curb expenses if prices climb further.
According to the study, 38% of Maryland respondents indicated they would cut back on dining out and entertainment first in the face of rising prices. Another 30% said they would limit travel, opting for staycations or local outings to save money. Subscription services, including streaming platforms and gym memberships, would be on the chopping block for 16% of Marylanders, while another 16% said they would reduce retail shopping.
Unexpected expenses were also a challenge for many Marylanders in the past year. Higher-than-expected grocery and utility costs were the most commonly cited surprise expense, with 38% of respondents mentioning these items. Car repairs or maintenance followed closely, affecting 36% of Marylanders, while 20% cited unexpected costs related to home repairs or rent increases. Medical bills also strained budgets for 6% of respondents.
Despite current perceptions of high inflation and frequent worries over costs, nearly half of Marylanders (48%) are optimistic about their personal financial outlook for 2025, with 28% feeling neutral. Only 8% of respondents described their outlook as very pessimistic.
The survey highlights the importance of understanding not just economic data but consumer sentiment. “Our survey reveals that while inflation may have eased on paper, consumers are still feeling the pinch in their day-to-day lives,” McDonald noted. “This perception gap between actual inflation and what Americans feel is driving significant changes in spending habits.”
Survey Methodology: CardRates conducted the survey using a double opt-in online panel of 3,000 geographically diverse respondents. To ensure quality, CardRates employed techniques like digital fingerprinting, bot detection, and geo-verification, alongside a thorough review by a dedicated team member for quality and accuracy. Open-ended responses were also screened to eliminate irrelevant or nonsensical content.
