Inflation is more than just a spike

The guest discusses how there is a difference between inflation as a broad economic phenomenon and the CPI as a measurement. While the CPI has dropped to around 3% from a peak of 9% last summer, the guest argues that both the peak and the drop are somewhat illusory due to factors like volatile commodity prices and base effects. To understand true underlying inflation, the guest suggests looking at wages, which have been steadily rising around 4% to 5% per year. The guest believes that this is where inflation will eventually settle in the coming years.