Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People

Why the CPI Drop Doesn't Match Your Grocery Cart
Episode 114 of Inflation Explained with Fexingo. The June 2026 CPI report showed headline inflation easing to 3.5%, but the PCE price index rose again. Lucas and Luna drill into why the official CPI number feels disconnected from what households actually pay at the register. They break down the substitution bias in the CPI basket — how the government assumes you switch to cheaper items when prices rise, even if you don't. They walk through real examples: beef versus chicken, store brands versus name brands, and the quiet creep of 'quality adjustment' that can make a smaller…
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