EPISODE · Jun 30, 2026 · 10 MIN
The Inflation Gap Between What You Pay and What CPI Shows
from Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People · host Fexingo
Episode 83 of Inflation Explained. Lucas and Luna dig into a persistent frustration for listeners: why their personal cost of living keeps rising faster than official CPI numbers suggest. The hosts anchor on the May 2026 core PCE reading of 3.4 percent — the highest since October 2023 — and contrast it with the CPI's 334.0 index level. They explore how the Bureau of Labor Statistics' 'owners' equivalent rent' methodology systematically understates housing costs for renters, using data from the latest PCE and CPI releases. Luna brings a real-world example: her own lease renewal in Austin, up 8 percent year-over-year, while OER shows just 4.5 percent. The conversation touches on why the Fed's preferred PCE gauge also misses certain out-of-pocket costs, and what that gap means for interest rate expectations. No jargon, just a clear breakdown of why the economy feels more expensive than the headlines admit. #Inflation #CPI #PCE #CorePCE #CostOfLiving #Rent #OwnersEquivalentRent #Fed #FederalReserve #Housing #RealEstate #Economics #Podcast #FexingoBusiness #BusinessPodcast #LucasAndLuna #InflationExplained #PriceIndex Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Episode 83 of Inflation Explained. Lucas and Luna dig into a persistent frustration for listeners: why their personal cost of living keeps rising faster than official CPI numbers suggest. The hosts anchor on the May 2026 core PCE reading of 3.4 percent — the highest since October 2023 — and contrast it with the CPI's 334.0 index level. They explore how the Bureau of Labor Statistics' 'owners' equivalent rent' methodology systematically understates housing costs for renters, using data from the latest PCE and CPI releases. Luna brings a real-world example: her own lease renewal in Austin, up 8 percent year-over-year, while OER shows just 4.5 percent. The conversation touches on why the Fed's preferred PCE gauge also misses certain out-of-pocket costs, and what that gap means for interest rate expectations. No jargon, just a clear breakdown of why the economy feels more expensive than the headlines admit. #Inflation #CPI #PCE #CorePCE #CostOfLiving #Rent #OwnersEquivalentRent #Fed #FederalReserve #Housing #RealEstate #Economics #Podcast #FexingoBusiness #BusinessPodcast #LucasAndLuna #InflationExplained #PriceIndex Keep every episode free: buymeacoffee.com/fexingo
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The Inflation Gap Between What You Pay and What CPI Shows
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