Inflation is slowing down but most people do not feel that way. I wondered why until I saw this commentary this morning.
Take a look at excerpts and then read the entire article.
Sincerely,
Ed
The United States has just experienced one of the biggest collapses in consumer inflation in modern history. In June 2022 consumer prices had risen 9.1 percent over the previous year. By December 2023 the rate of increase had slowed to 3.4 percent. And yet, in survey after survey, voters still declare inflation to be at or near the top of their list of concerns.
 Fresh Inflation Data Shows Intact, but Bumpy, Cool-DownInflation remains faster than usual — and month-to-month bumps are still likely as volatile prices fluctuate — b… |
Why aren’t voters recognizing the decline in the inflation rate? Because voters are humans, and humans don’t think about inflation rationally. To understand why, let’s look at a Snickers bar.