Abstract

It is widely believed that high inflation reduces the popularity of incumbents, and contributed to poor incumbent performance in recent elections in the United States and elsewhere. Existing research shows that voters’ inflation perceptions are associated with their evaluations of incumbent parties, but these observational studies cannot eliminate the possibility that the causal relationship runs the other way, where opposition to incumbent governments causes individuals to report higher price increases.

To help overcome this inferential challenge, this study draws on a pre-registered experiment embedded in a nationally representative survey fielded just days before the 2024 US Presidential election. We find that priming Americans to think about inflation reduced support for the incumbent party. This effect is most pronounced among Independents and Democrats.

These findings suggest that inflation likely contributed to the Democrats’ 2024 electoral defeat, and provide novel evidence that inflation has a causal effect on support for incumbent parties.