A lot of the sorts of things that people are really perceiving as the biggest contributors

to the cost of living challenges are things that the only way the Fed is going to affect

those prices is by slowing demand dramatically and that's going to have other costs on our

economy and on our political feelings.

Hello and welcome to the 538 Politics Podcast. I'm Gailan Frick. Americans aren't happy

with the economy and it's no wonder why when you look at the latest inflation numbers

out this week. Prices have risen 8.5% since last March and wages haven't kept pace, rising

6% in the past year. Economists are debating whether there are silver linings in marches

inflation numbers but nonetheless 8.5% inflation is the highest rate in 4 decades and Americans

have taken note. According to Gallup, 17% of Americans save the high cost of living is the

most important issue facing the country. That's the most since 1985. In the University

of Michigan survey of consumers, more households reported that they expected worsening finances

over the coming year that at any point in the history of the survey which began in the

1940s and only 30 to 35% of Americans in polling approve of President Biden's handling

of the economy. Americans assessment of where we are and what the future looks like is pretty

brutal.

And today we're going to look at the economics behind that assessment.

And here with me to do that is Professor of Economics and International Relations at

George Washington University, Tara Sinclair. Welcome back to the podcast Tara.

It's great to be back, Alan.

So first off, let's look under the hood of those top line inflation numbers. What prices

are rising the most or least and why?

...