True Inflation May Have Peaked in Late 2022

Despite the U.S. stock market reaching all-time highs, the average American remains pessimistic, a situation that is seen as unhealthy for both the stock market and the economy. Critics argue that consumer pessimism is unwarranted, given the near 50-year low unemployment rates and significantly reduced inflation compared to two years ago. However, a new study challenges this view by suggesting that if inflation were accurately measured, it would reveal the extent of the financial strain on consumers. This study supports the notion if the CPI fully reflected higher borrowing costs, it would have peaked at 18% in November 2022 and still be around 8%.