Inflation relief could be within reach—provided these three market factors align

Understanding Inflation: Data Versus Daily Life

Official reports on inflation often paint a different picture than what individuals feel in their everyday lives. This contrast was especially evident in 2025. While the consumer price index (CPI) showed that inflation was slowly cooling off after two years of sharp increases, many consumers still felt burdened by stubbornly high costs. Whether shopping for vehicles or groceries, people continued to experience sticker shock at the checkout.

To measure inflation trends, the Federal Reserve relies on the core personal consumption expenditures (PCE) price index, which excludes the often-volatile prices of food and energy.