Official data shows that inflation has declined over the past year, but nearly two out of every three respondents to a recent survey believe it has risen.
by Terry Lane
Investopedia
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While the Federal Reserve is starting to feel pretty good about inflation, consumers remain frustrated about price pressures.
A recent survey by Morning Consult showed that nearly two out of every three respondents believed that annual inflation was either much or somewhat higher than a year ago, even though inflation has slowed from last year no matter how you measure it.1
“I think that consumers think about it differently than economists do,” said Sofia Baig, economist at Morning Consult.
So, why are consumers’ views of inflation different from the members of the Federal Reserve? One answer is consumers perceive price changes over time differently, Baig said.