While All Inflation Feels Bad, Housing Inflation Is the Worst

Two weeks ago, I asked why Americans were in such a rotten mood when the data said the economy is in such good shape. The disconnect has only grown since. Inflation, we just learned, eased in October, extending a two-week rally in stocks and bonds. And yet the University of Michigan’s index of consumer sentiment keeps falling.

It’s clear readers cared less about inflation dropping, which only meant prices were rising more slowly, than about the fact that the level of prices is painfully high compared with three years ago.