Inflation’s stubborn grip shapes the decade’s economy

Inflation is no longer a temporary spike but a defining challenge of the 2020s as multiple shocks push price pressures higher across the economy. Gasoline surges drove a sharp monthly CPI jump and lifted year-over-year inflation to 3.3%, with a still-elevated 4.1% inflation rate over the recent three months. Americans’ attitudes toward the economy have deteriorated even as GDP holds up, with the misery index at 7.6% in March. Hiring has cooled to pandemic-era lows, wages growth has slowed, and AI-driven shifts in labor demand add uncertainty, suggesting conditions may worsen before they improve.