When our inflation infeelings don’t match the CPI

In this episode, the hosts, Kenny Malone and Jeff Glow, explore the significant anxiety that inflation has caused among Americans, particularly as they notice price hikes in everyday items like groceries. The concerns are heightened by social media platforms like TikTok, with users expressing shock at specific price increases—like an $8 box of Cinnamon Toast Crunch. The narrative discusses the psychology behind inflation fears, contrasting personal experiences and perceptions against measured statistics that suggest inflation is not as severe as it feels.

The show features Rocky Walker, a TikTok creator who shares his experiences with grocery prices. Rocky embodies the young adult perspective, expressing confusion and frustration over rapidly rising prices while reflecting on nostalgic items from his childhood. His interactions illustrate how younger generations, faced with their first significant inflationary experience, are processing these economic changes through humor and storytelling on social media.

The hosts delve into economic research with expert Ulrika Momendir, who discusses how personal experiences shape inflation-related fears and behaviors. Ulrika explains that economic scars from living through inflation can lead to increased future inflation expectations among individuals. Her research highlights discrepancies between actual inflation statistics and the perceived inflation consumers experience, urging listeners to consider how frequently purchased items disproportionately influence personal inflation calculators.

The episode further explores the complexities of measuring inflation through housing costs, featuring economist Louise Schaener. The discussion reveals that standard methods of calculating inflation often lag behind real market conditions, particularly in rental and homeowner circumventions. The unpredictability of housing costs, and how they contribute to overall inflation metrics, highlights the disconnect between economic data and personal experience.

As the episode concludes, the hosts offer strategies suggested by Ulrika to manage inflation perceptions. Recommendations include focusing on budgeting without obsessively tracking fluctuating grocery prices. Emphasis is placed on understanding the distinction between temporary price changes and genuine inflation trends.