Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
The Cars You Actually Drive vs CPI Inflation
CPI says new-car prices rose 27% since 2020, but the average transaction price is up 34%. Lucas and Luna dig into the gap: why the government's methodology misses the cars people actually buy, how incentives and financing distort the numbers, and what that means for the Fed's inflation picture. They discuss the mix-shift problem—when buyers trade down to cheaper models, CPI sees disinflation even as the same car costs more—and why the used-car market is still a wild card. Tied to the latest CPI reading of 334.0 and a cooling labor market, this episode unpacks one of the sneakiest…
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