Consumers’ everyday activities, such as shopping, affect their perceptions of current inflation. These experiences may be contributing to the gap between actual and perceived inflation. Survey results show that the gap is particularly wide for people whose price growth expectations are higher than others’ for items they routinely pay for or that are very visible, such as: food gasoline rent housing Expectations for growth in these specific prices are either rising or stable at very high levels. The widespread view that these routinely seen prices are growing quickly helps explain some of the abnormally large gap between perceived and actual inflation. In follow-up interviews, re
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