Eighty-five percent (85%) of adults are at least somewhat concerned about inflation these days, according to the latest Rasmussen Reports national telephone survey.

This number is virtually identical to the findings in a similar Rasmussen Reports survey a month ago.

Sixty percent (60%) think it is likely the Federal Reserve will increase interest rates in an effort to control inflation, but a plurality (38%) believes that raising those rates would increase the rate of inflation.

Increasing rates is a common strategy of the Federal Reserve during inflationary periods. Twenty-three percent (23%) think raising interest rates would decrease inflation and 20% said it would have no impact.

During the month of July, inflation increased 5.6%, representing the largest one-month increase in 17 years. While higher energy and food prices stirred the most headlines, clothing and airfares, among many others, also registered significant increases.

Slightly more women (90%) than men (81%) report being concerned about inflation. However, women and men over the age of 40 are more concerned than those under 40.

Democrats are more likely than Republicans to believe raising interest rates will increase inflation. While 33% of GOP voters believe this to be true, 42% of Democrats agree, along with 38% of unaffiliated voters.

Another major concern in the U.S. economy is the current housing crisis and the high number of foreclosures that have occurred recently. Sixty-four percent (64%) said that raising interest rates would hurt the mortgage foreclosure situation, while only 11% said it would help the situation. Another 11% believe it would have no impact.

Again, Democrats and Republicans differ slightly on this issue. Sixteen percent (16%) of Republicans believe raising rates would help the situation, while only eight percent of Democrats and 10% of unaffiliated voters concur.

Although oil prices have decreased recently, 81% of Americans believe that developing new sources of energy is an urgent national need and 64% percent favor offshore drilling for oil. Unfortunately, Congress recessed before voting on lifting the ban on offshore oil drilling. However, 61% say that Congress should come back from recess and vote on drilling immediately.

Twenty-eight percent (28%) say the Federal Reserve is doing a good or excellent job during the past six months. Almost an equal number (25%) say they are doing a poor job. Men have a slightly more favorable view of the Fed than women. While 32% of men say it is doing a good or excellent job, just 24% of women agree. But 31% of men and 20% of women say the Fed is doing a poor job.

Voters nationwide say economic issues are their number one concern this campaign season, as opposed to national security which was at the top of the list for Election 2004.

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