Why Are We (Still) So Angry About Inflation?

According to a July 2026 survey from the Pew Research Center, 71 percent of Americans are very concerned about the cost of healthcare, 66 percent about the cost of groceries and consumer goods, and 64 percent about housing costs. And politicians are responding—at least in their rhetoric. It’s hard to change the TV channel or queue up a YouTube video this election season without being inundated by ads touting a candidate’s pledge to fight for affordability.

The University of Michigan economist, Justin Wolfers, PhD ’01, says that purchasing power has actually increased in recent years. Aside from a short-lived spike in inflation during the COVID-19 pandemic, consumer goods in particular have gotten more affordable. So why are we still so angry about rising prices? Drawing on the work of the Harvard economist Stefanie Stantcheva, Wolfers says the reason our feelings don’t match the facts has to do with the terrifying “boss” model of inflation we all carry around in our heads.