Key Points
Many economists and political commentators wonder why U.S. consumers continue to feel they are suffering from inflation, although the annual rate of inflation dropped sharply during 2023 and is still well below its peak in the summer of 2022..
They are looking at the rate of price increases over the past three years..
It wouldnt be much comfort if an economist told you that you should feel good because the price of the tuna sandwich rose by only 3.11% in the last year, from $11.45 to $11.80..
. Further, at the beginning of the pandemic, many consumers of moderate or lower income received some type of government grant, such as refundable tax credits for children or unemployment checks that exceeded their prior take-home pay..
In short, prices are up, wages arent keeping pace, and the tuna sandwich that used to cost $10 now costs $13 including a small tip..
