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, not a consumption good, created this disconnect. They also look at how the Fed's preferred PCE index weights different categories, and why your pizza delivery fee might be more honest than the government's numbers. If you've ever felt like the official inflation rate doesn't match your wallet, this episode explains why. #CPI #OwnersEquivalentRent #HousingInflation #BureauOfLaborStatistics #FederalReserve #PCE #ShelterCosts #RentVsOwnership #InflationMethodology #CostOfLiving #EconomicIndicators #RealWorldInflation #FexingoBusiness #BusinessPodcast #Economics #InflationExplained #LucasAndLuna #ConsumerPrices Keep every episode free: buymeacoffee.com/fexingo