Why the CPI Thinks Your Rent Is Cheaper Than It Is

We’ve all felt the sting at the checkout counter while being told by official reports that inflation is cooling, but why is there such a massive disconnect between our bank accounts and the government's data? This episode dives deep into the "basket of goods" methodology used to calculate the Consumer Price Index, revealing how statistical weights, lag times in housing costs, and controversial "hedonic adjustments" can paint a picture of the economy that few people actually recognize. From the "steak-to-chicken" substitution bias to the way technology improvements are used to mask rising costs, we pull back the curtain on the world’s most influential economic fiction to see if a single number can ever truly capture the reality of 340 million people.