Planet Money When our inflation infeelings don’t match the CPI
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Aug 15, 2025 The podcast dives into the emotional impact of rising grocery prices, highlighting personal stories that resonate with many. It explores the disconnect between individual inflation experiences and official statistics, revealing the phenomenon of 'inflation feelings.' Generational anxiety is examined through humor on social media, especially among Gen Z. Budgeting challenges and rising rents add to the complex picture, with economists breaking down how these personal perceptions clash with broader economic measures.
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Viral Cereal TikTok Sparked The Episode
- Rocky Walker posted a viral TikTok freaking out over an $8 box of Cinnamon Toast Crunch and asking if he was "tripping."
- That personal grocery shock launched the episode's exploration of why individual price feelings diverge from official inflation data.
High Prices Versus Lower Inflation Rate
- Official CPI showed groceries rose about 2.2% over the last year while many felt far higher spikes.
- The episode frames a core puzzle: cumulative higher prices versus a cooled inflation rate.
Personal History Shapes Inflation Expectations
- Ulrike Malmendier shows people anchor inflation expectations to the period they grew up in.
- Those who lived through high inflation (e.g., 1970s) remain more pessimistic about future inflation.