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I really don't like making grand pronouncements (I think it's a bit narcissistic) but since I seem to have a reputation on The Motte I think it's only fair to take my licks:
Blah blah blah, words words words, excuses excuses, feel free to get your licks in now.
This is an area where number lawyering distorts what's rather straight forward observationally. Cost of living is bad, and constantly getting worse. That it was getting worse at a faster rate eariler, when it wasn't as bad on absolute terms, isn't really a headscratcher.
You're comparing rate of inflation, but sentiment is accounted for by looking at cumulative effect. Inflation is a rate of change number. Inflation was bad under Biden, it ate away a lot of slack in the system; now under Trump inflation is still too high even if it's eating cost of living at a lower rate of increase.
Now this is a different conversation than laying blame, but it helps udnerstand why comparing raw inflation rate is not as straightforward when translating it into felt effects.
Imagine you're speeding toward a cliff and accelerating. Now we swap drivers, and not only does that driver maintain the speed, but he continues accelerating! only not accelerating as quickly as driver 1.
Does it really make sense to be confused that the second driver is met with more panic than the first?
Inflation only goes one way. We're not getting deflation without a recession.
I hope there aren't too many people under the delusion that 2019 prices can come back
uhhh... yes. I was going to add an aside but deleted it because I guess I wrongly assumed it was understood in the frame. That was implicit in the 'cumulative effects' point.
I had a point about building a bridge over the cliff faster than the car was accelerating, but deleted it because it didn't add to the illustration.
Deflation is irrelevant to my point about why a blank 8% was more than 6% doesn't tell the story about cost of living pain.
We came of a decade of very low inflation and a rapidly expanding economy. Then in the first part of this decade, we felt that expansion slow down combined with extremely high inflation. This ate up a lot of the slack in the system. Now under Trump 2, inflation is still too high, and the increase in earnings isn't being felt by the people. So depsite it being less 'too hihg' than under Biden, it can still hurt more. None of this requires expectations of deflation to explain why comparing Biden's highest high to trumps high doesn't tell the story or produce a conundrum
Inflation is 3ish% in 2026 compared to around 2 for the last decade before. It's not great but it's a far cry from the earlier highs. It's not even close.
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