Voters facing tough choices in midterm races are being hit hard by inflation.

• Inflation has been as bad or worse in few areas of the country compared to the South, where prices have increased by an average of 8.4% from last year across the 16-state region.
• The 2022 midterm election cycle in Georgia and Arizona is heating up, with prices not being the only thing on fire.
• Some residents predict that the increase in food, gasoline, and housing costs may influence their voting decisions this year.
• The consumer price index report for March 2022 from the Labor Department will be released on Tuesday at 8:30 a.m. ET.

Inflation is evident in Savannah, Georgia, without Matthew Rice having to search hard.

He stated that a gallon of gas cost $2.79 a few months ago. However, now it costs him more than $4.

"As expected, when the cost of gas increases, so do the prices of products, which has impacted our household," the 45-year-old stated.

One of the tens of thousands of Americans, Rice, a longtime fan of MLB’s Atlanta Braves and a graduate of Armstrong State University, now known as Georgia Southern University, is strained by rising prices and has shaped their thoughts about this year’s elections.

Rice, who manages reservations for an RV park on nearby Tybee Island, has had to alter her spending habits due to gradual but steady increases in the costs of groceries, housing, and gas.

Rice has become more selective when shopping for groceries every other Friday due to inflation, despite his work being busy as more Americans take long-delayed vacations following Covid pandemic-era shutdowns.

At times, we have made substitutions based on what's available due to the supply chain, and at times, due to price, we may have tried other brands of products that we normally wouldn't have considered before.

Inflation has been worse in the South, where prices have increased by an average of 8.4% from the previous year, compared to 8% in the Midwest, 8.1% in the West, and 6.6% in the Northeast, as per the Bureau of Labor Statistics.

Over the past year, Tampa, Florida, Miami, and Atlanta have experienced an average inflation rate of 9.6%, 9.8%, and 10.6%, respectively.

Inflation has become a major concern for voters and candidates in Georgia during the current election cycle.

Several Republicans aim to remove Democratic Senator Raphael Warnock from his seat at the federal level, having defeated Republican Kelly Loeffler in a special election in 2020. Loeffler was appointed by Republican Governor Brian Kemp to complete the term of former GOP Senator Johnny Isakson, who resigned due to health issues.

Georgia's first Black senator, Warnock, helped Democrats gain a razor-thin majority in the Senate with his victory.

The gubernatorial race in Georgia features Kemp versus Perdue, a former Republican senator who has received Trump's endorsement.

Perdue aims to capitalize on Georgia Republicans' dissatisfaction with Kemp following the governor's refusal to overturn the 2020 election results that saw Biden emerge victorious. Trump, despite his false claims of widespread fraud, urged the state's top elections official to "find" enough votes to overturn his loss.

Stacey Abrams, who lost the 2018 governor's race to Kemp by a narrow margin, is likely to challenge the GOP winner in the November general election.

Despite the differences among Georgia's candidates and elections, voters are united by their shared exhaustion over the increasing costs of gasoline, groceries, and housing.

Since the Ronald Reagan administration, year-over-year price increases have been observed at unprecedented levels, according to recent data from the Labor Department. The department's benchmark consumer inflation index rose 7.9% in the past 12 months, which is the highest reading since January 1982.

The consumer price report for March 2022 from the Labor Department will be released on Tuesday at 8:30 a.m. ET.

According to sources close to the White House, the administration anticipates a high inflation rate for March, as the previous print did not accurately reflect the significant increase in oil prices resulting from Russia's invasion of Ukraine in February.

The department uses the consumer price index (CPI) to measure monthly changes in the prices of goods and services commonly purchased by Americans.

In the March report, core inflation, excluding volatile energy prices, may be less significant.

The Federal Reserve, responsible for maintaining price stability in the US, views inflation of approximately 2% as a positive outcome of economic growth. However, an excessive amount can indicate economic overheating and a disconnect between the economy's supply and demand forces.

Inflation can decrease the value of money, making it harder for consumers to buy the same amount of goods and services with their income.

Rice stated that some grocery purchases are not open to debate as prices rise quickly in Savannah.

Kids usually have a certain taste, which is why we don't make too many adjustments when it comes to my daughter's favorite brands like Kraft Macaroni & Cheese and Quaker Oats' Peaches & Cream flavored instant oatmeal.

Inflation nation

The inflation problems in the country started in the spring of 2021 with the arrival of Covid vaccines and were later intensified by several unrelated factors.

The surge in demand for new cars was fueled by the savings accumulated from staying indoors during the pandemic, while travel and dining out also experienced a resurgence in popularity due to the inoculations.

The pandemic caused factory shutdowns, which hindered automakers such as and in their production. As demand increased and there was a shortage of computer chips, vehicle inventory dwindled, causing prices to rise on cars and electronics.

Due to Covid-related sick calls and quarantines, labor shortages caused freight backlogs and higher shipping costs, which were eventually passed on to consumers at the ports of Los Angeles and Long Beach, California.

The escalation of the conflict between Russia and Ukraine has led to an increase in oil prices and a surge in real estate values, resulting in higher housing costs.

According to Caroline Fohlin, an economics professor at Emory University, Arizona and Georgia are experiencing significant increases in home prices due to the trend of people leaving large cities for more affordable locales. The pandemic has enabled city dwellers to work remotely from anywhere, making it possible for them to purchase spacious homes with yards at a lower cost than a one-bedroom apartment in New York or San Francisco.

According to Apartment List, the average monthly cost for a one-bedroom apartment in Atlanta increased by approximately 18% in 2021, reaching $1,831.

Fohlin stated that people are moving in large groups to places like Savannah and Charleston, which are located in the coastal South. He suggested taking a look at the real estate market on Sullivan's Island, South Carolina, where shacks are being sold for millions of dollars.

"Old-timers who can sell their $50,000 shacks for $3 million are in luck," she said.

The increase in housing costs, according to Roger Ferguson, former vice chair of the Federal Reserve, is the primary reason for the rise in consumer prices in Georgia and Arizona.

Ferguson, a CNBC contributor, stated last month that there may be differences in the labor force and compensation composition. However, his hypothesis is that the primary factor is housing.

In New York City, where renters make up approximately 67% of households, the average rent for a one-bedroom apartment decreased from around $1,920 per month in February 2020 to $1,510 by January 2021 as people left crowded areas, according to Apartment List.

Since then, rents have more than rebounded, with bosses increasingly insisting on workers returning to their offices. The monthly cost of a one-bedroom apartment in New York City is now approximately $2,068.

Politics of prices

The issue of inflation resulting from the mismatch between supply and demand has become a critical challenge for Biden and Democrats in their efforts to maintain control of Congress this year.

In March, 17% of Americans, a 7 percentage point increase from February, identified inflation as the most pressing issue facing the U.S., according to Gallup.

Biden's approval rating for handling the economy has decreased from 54% in February 2021 to 36% in a recent Gallup poll, coinciding with the rise in inflation.

Democrats' economic mismanagement and frivolous spending have been seized upon by Republicans as evidence of their failure to regain control of Congress. The American Rescue Plan, a $1.9 trillion coronavirus relief law passed in March 2021, has been the main focus of their attacks.

In Georgia's Senate race, Herschel Walker, a former pro football player and a Republican, is running against Warnock.

Echoing the frustrations of many Georgia Republicans, Walker, a longtime Trump ally, shared on Twitter an image of a near-barren grocery store shelf and blamed Democrats' economic agenda for the frothy inflation.

President Biden's approval ratings are declining, and the supply chain is disrupted, leading to record-high inflation. Meanwhile, people are struggling to find affordable gas and groceries on the shelves. Why is the administration prioritizing social spending?

Democrats claim that the price spikes are due to a mix of supply chain overload, the conflict in Ukraine, workforce shortages, and exceptional demand. Warnock has countered opponents' inflation accusations by accusing corporations of exploiting the situation.

Georgia consumers are facing record-high prices while corporations are experiencing record profits, according to Warnock. He stated this in a Twitter post in February. To address these issues, he is working to streamline supply chains and limit prescription drug out-of-pocket costs for Georgians.

Heating up in Arizona

In Arizona, consumer spending and the political landscape have been impacted by rising prices.

Aaron Spector, a 28-year-old Tempe resident, stated that his landlord's decision to increase rent by almost 20% prompted him to make some alterations - he purchased his own home.

Spector, a salesperson at a logistics firm, told CNBC that he didn't make sense of renting anymore due to the increase he saw. Although he had planned to buy a house, the timeline was expedited when he saw the new rent price.

Everywhere in nearby Phoenix, Kevin McElwain observed signs of rising housing costs.

Sourcing labor and materials for homebuilders, McElwain stated that the increase in raw material costs is driving up the prices of new homes.

He stated that prices for framing, concrete, and electrical work have likely increased by at least 50% due to supply shortages for workers and raw materials.

McElwain, 29, stated that some individuals reject bids for new projects due to a lack of required parts and materials or crews.

The primary reason for Phoenix's high prices, which have increased by 10.9% in the past 12 months, is likely due to shortages. In the city, meat prices have increased by 16.2%, clothing costs have risen by 15.5%, and restaurant bills have gone up by 5.9% over the past year.

At the ballot box on Election Day, Spector stated that inflation and the broader state of the economy will impact his decision.

The graduate of the State University of New York at Geneseo stated that the economic impact would definitely influence their voting decisions.

McElwain, a Phoenix resident who is not registered to vote with either party, stated that inflation is a major concern for him during this election year.

He continued, "I'd like the candidates running to address it, but I'll take their statements with a grain of salt."

The upcoming votes from McElwain and Spector will determine whether Sen. Mark Kelly will retain his seat in Arizona's 2020 special election, which he won against then-GOP incumbent Martha McSally to complete the remainder of former Sen. John McCain's term.

Kelly, like Warnock, has attempted to persuade voters that he and his fellow Democrats are working to control excessive prices.

In March, a retired astronaut outlined six strategies he is employing to combat inflation in Arizona. These strategies include proposing a bill to suspend the federal gas tax for the remainder of 2022, supporting the CHIPS semiconductor bill, and negotiating a deal to cap out-of-pocket prescription costs for seniors.

Kelly stated in a Twitter post on April 2 that the global microchip shortage, which is increasing prices on various items including cars and appliances, can be resolved through a bill aimed at boosting U.S. microchip manufacturing. This legislation will also create numerous high-paying jobs for Arizonans and contribute to the growth of the state's economy.

The anxiety caused by soaring inflation has been reflected in the policy decisions of swing-state lawmakers this year, and it has also affected the re-election prospects of incumbents. On Thursday, Senate Majority Leader Chuck Schumer named both Kelly and Warnock to a conference committee that will work on a final microchip bill with House members.

Both senators have attempted to address the issue of high gas prices, which has been a concern for Rice in Georgia and voters across the U.S., by co-sponsoring legislation that would suspend the U.S. gas tax for the rest of the year. However, the bill has not progressed since it was introduced in February.

Kelly stated that the bill would reduce gas prices by temporarily suspending the federal gas tax until the end of the year, which would aid Arizona families facing high expenses for various items, including gas and groceries.

Warnock stated: "Hardworking Georgians being squeezed at the pump understand that every penny counts."

Peaches & Cream is the name of Quaker Oats' instant oatmeal flavor.