Berliner Boersenzeitung - In swing state Pennsylvania, middle class struggles to get by

Purchasing power is one of the main themes of the US presidential election, and a thorn in the side of Democrats -- especially in this Rust Belt battleground state, which could be one of a handful to decide who wins the White House in November.

"Inflation has come down tremendously," said Bill Leiner, a 70-year-old nurse and volunteer for the Democratic Party, which seems to be coalescing behind Vice President Kamala Harris after Joe Biden's withdrawal from the race.

"However, there are many people... who don't believe that, because there's a right-wing echo chamber pumping out disinformation," Leiner told AFP, explaining he even has to help his own family members separate truth from fiction.

When a loved one complained about the high price of eggs, Leiner explained it was the result of a bird flu epidemic, not government policy, and advised the person to buy the store's brand, instead of a name brand product, to save money.

"I've amended my habits. I keep an eye on prices. I look at what I do, at my budget," he said.

Matthew Kayes, who was exiting a Whole Foods supermarket with his family, said he too had changed up his shopping habits, buying different products from different suppliers.

Kayes even goes straight to local farms in the region dotted with green hills, where "the prices are generally cheaper and, we find, the produce is better."

Accountant Tamy Ferry said she watches her budget, but still buys what she likes, even if prices are higher.

"Occasionally, I stay away from certain things, or I wait until they go on sale, but I do shop at various stores," Ferry said.

- More visitors at food pantries -

On Friday, all eyes will be on new inflation figures from the US government. May data showed that goods prices had cooled slightly -- good news for both consumers and Democrats keen to overcome voter hesitation about their economic record.

In Allentown, residents are considered middle class if their households earn between $37,300 and $112,000 a year. Even then, some have had to turn to food pantries.

"For the last two years, we saw almost a doubling of the people showing up in our food pantry every single day," said J. Marc Rittle, the executive director of New Bethany, a nonprofit that helps those facing economic and social hardship.

According to Rittle, more and more of the newcomers visiting New Bethany are middle class.

"Housing costs have skyrocketed, so people have to choose between paying their rent or buying food," he said, explaining those coming to the pantry are looking for a "complement" to the food they can afford on their own.

"We don't refuse anyone," Rittle said -- even those whose salaries exceed the level suggested by the federal Feeding America program.

He said he noticed that more Allentown residents started having trouble when the financial aid programs launched during the coronavirus pandemic expired.

At that same moment, the war in Ukraine sent oil prices soaring, which translated into an overall jump in the cost of daily necessities.

The annual inflation rate has certainly fallen, from a high of 9.5 percent in June 2022 to an average of 2.6 percent in recent months.

"A slowdown in inflation is still an increasing rate of the cost of living, so that doesn't help at all. It's just not going up as much as before," Rittle said.

"We would have to return to a lower cost of living."

- 'Modest and incremental' -

Al Jacobsen, executive director of Allentown's 1,000-seat Miller Symphony Hall, also counts on the assistance of others to keep his budget out of the red.

He struggles to balance higher operating costs and salaries with the impossibility of raising ticket prices without seeing a hit on attendance, among patrons who face tough choices about how to spend the little disposable income they have.

He also says he has created new ticket categories and launched subscription incentives, but has been unable to book some artists whose fees have soared.

"We are not an essential service like food or shelter, so we're limited in how much we can increase without affecting the demand," Jacobsen said.

"Our increases have been modest and incremental."

(L.Kaufmann--BBZ)