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Below are some of the most interesting things I came across this week.

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New research suggests that for the average American household inflation has been a greater problem than the CPI figures indicate. Bloomberg reports, “The TLC includes only a household’s minimal needs: housing, medical care, transportation, groceries, child care, technology such as smartphones and internet connections, and miscellaneous expenses like clothing and personal hygiene. Since 2001 the alternative index has risen 1.3 times faster than the CPI.”

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This may be one reason that signs of consumer distress appear to be rapidly growing. Myrmikan Research reports, “Google Trends reveal ‘a largely unfiltered sample of actual search requests made to Google.’ The samples below paint a bleak picture.”

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And inflation pressures are only likely to grow in the months ahead. “BNP Paribas economists calculate that U.S. firms have shouldered 64% of tariff pain so far, foreign exporters just under 20%, and U.S. consumers only 17%. Their economic models suggest that will flip dramatically in the coming months to 63% for the U.S. consumer and just 1% for U.S. firms,” reports Reuters.

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These issues, of course, are far less impactful on the wealthy than they are on the rest. But, as Robert Armstrong reports, it’s possible that rising inequality itself is a driver of persistent inflationary pressures.

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As Peter Atwater writes, “The K-shape to our economy is no longer just a story about the divergence between those at the very top and the very bottom of the economy; it is a statement on the widening gap between those at the top and everyone else.” Furthermore, Peter continues, “it is not hard to see how, if left unaddressed, the feelings that accompany extreme economic inequality can foster revolution.”

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