Why Are Things Still Expensive? The Economics Behind the Inflation Hangover with Claudia Sahm & Doug Porter

Inflation is cooling. The data says the worst is behind us. So why does everything still feel so expensive? 

In this episode, we unpack one of the defining economic puzzles facing advanced economies today: The gap between what the numbers say and what people actually feel. Because inflation isn’t just about how fast prices are rising, it’s about where they land, and what it takes to live with that shift. 

Featuring insights from Chief Economist Claudia Sahm and BMO Chief Economist Doug Porter, this episode explores how pandemic-era inflation reset the price level, why higher interest rates are still working their way through the system, and how housing, debt and timing are shaping the Canadian experience. Along the way, we dig into the difference between supply- and demand-driven inflation, the limits of monetary policy, and why the “way down” can feel just as difficult as the way up.
 
Links:
- Claudia Sahm - Website
- Claudia Sahm - Bloomberg
- Claudia Sahm – Substack “Stay-At-Home-Macro"
- Douglas Porter – BMO Economics
- Doug Porter Talking Points - “It Ain’t Over ’til It’s Over”
- Doug Porter Talking Points - “Whole Lotta Hold”