How The U.S. Is Beating Inflation

What people believe may happen to prices in the future can influence actual inflation. “People behave in accordance with their expectations and with their sentiment and attitudes towards the economy,” Joanne Hsu, director of the Surveys of Consumers at the University of Michigan, told CNBC. Watch the video above to learn more about how inflation expectations are measured, why the Federal Reserve cares so much about what Americans predict and how consumer behavior can manifest higher prices. Chapters: 00:00 — Introduction 01:27 — Inflation mentality 05:36 — Short-term and long-term expectations 09:50 — Wage-price spiral Produced by: Andrea Miller Additional Camera by: Mark Licea, Jack Hillyer Edited by: Amy Marino Animation: Jason Reginato, Josh Kalven Supervising Producer: Lindsey Jacobson