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When our inflation infeelings don’t match the CPI

Planet Money

2025/08/15
Planet Money

Planet Money

2025/08/15

Shownote

For most Americans, we just lived through the highest period of inflation in our lives. And we are reminded of this every time we go grocery shopping. All over TikTok, tons of people have posted videos of how little they got for… $20. $40. $100. Most upset...

Highlights

Inflation has become a deeply personal issue for many Americans, especially when it comes to everyday purchases like groceries. Despite official data showing that inflation has slowed, many people still feel the pressure of rising prices. This episode dives into why there's such a gap between the numbers economists use and the feelings consumers experience, particularly when they're faced with sticker shock at the store.
00:00
Consumers continue to express anxiety about high grocery prices despite cooling inflation
08:45
Ulrike Malmendier studies how living through high inflation affects long-term economic expectations.
11:55
Core CPI excludes volatile energy and food prices to show overall inflation trends
20:58
Average rent in Chicago is about 29% higher than pre-pandemic levels
23:40
Owner's Equivalent Rent estimates the potential rental value of owner-occupied homes.

Chapters

Why We Feel Inflation Even When It's Cooling Down
00:00
Generational Memories of Inflation: From Cereal Boxes to Economic Anxiety
06:07
Why Your Inflation Doesn’t Match the Numbers
11:55
Rent Increases and the Hidden Cost of Living
18:07
When Inflation Data Doesn’t Match Your Reality
23:40

Transcript

Rocky Walker: This is Planet Money from NPR. Kenny Malone: What drove the young man named Rocky to the Cinnamon Toast Crunch that day? His inner child, perhaps? Memories of Saturday mornings and cartoons in pajamas? Maybe. But there he was, in the cereal ...