Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
The Inflation Gap Between What You Pay and What CPI Shows
In episode 93 of Inflation Explained, Lucas and Luna tackle a persistent frustration: why the official CPI says inflation is cooling at 2.3% while your actual expenses keep climbing. They unpack the Bureau of Labor Statistics' 'owners' equivalent rent' methodology — a survey that asks homeowners what they'd charge to rent their own place, rather than tracking real rents paid. With new data showing actual market rents rising 6.8% year-over-year versus CPI shelter at 4.1%, the gap is widening. Lucas explains how a 1990s decision to treat housing as an investment good…
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