Cost of living drives Republican defeat in US midterms

The cost of living, driven by persistent inflation, was the decisive factor in the Republican Party's sweeping defeat in Tuesday's US midterm elections, according to analysts. Voters cast their ballots with their wallets, citing a deteriorating standard of living. Gasoline prices are 38% higher than before the war with Iran, and wages have failed to keep pace with inflation, which has rebounded to 3.7% annually. While unemployment remains low, job growth is concentrated in a few sectors, and many workers are dissatisfied with their conditions. Economists describe the US as becoming a "K-shaped economy," where wealthier Americans continue to prosper while others face shrinking economic opportunities. The Democratic victory may be hollow, as Congress lacks the tools to address the primary inflation drivers: tariffs and the Iran conflict.