How Higher Prices Are Reshaping Consumer Behavior in 2026

Consumer sentiment hit a record low in May 2026, yet the US economy keeps growing. In this episode, Lucas and Luna examine the paradox of rising prices and resilient spending. They dig into the latest CPI and PCE data, the disconnect between sentiment and actual consumption, and what it means for the Fed's next move. They also explore how Americans are shifting spending patterns—trading down on goods, paying more for services—and why that matters for inflation forecasts. Specific numbers from this week's data anchor the conversation, including the 10-year breakeven inflation rate ticking up to 2.40 and the unemployment rate holding steady at 4.3 percent. #ConsumerSentiment #Inflation #CPI #PCE #FederalReserve #USEconomy #SpendingPatterns #EconomicData #May2026 #BreakevenInflation #Unemployment #LucasAndLuna #FexingoBusiness #BusinessPodcast #EconomicsShow #CostOfLiving #PriceHikes #FedPolicy Keep every episode free: buymeacoffee.com/fexingo