Core Insights - The Consumer Price Index (CPI) may not accurately reflect the inflation experience of middle- and low-income Americans, as argued by former U.S. Comptroller Gene Ludwig [2][4] - Ludwig and the Ludwig Institute for Shared Economic Prosperity (LISEP) have proposed an alternative measure called the True Living Cost (TLC), which focuses on essential household needs and has increased 1.3 times faster than the CPI since 2001 [3] Economic Impact - The disconnect between inflation statistics and the real-life experiences of Americans was evident during the last presidential election, with rising grocery prices being a significant concern for voters [4] - The August 2025 Survey of Consumer Expectations from the New York Fed indicates that labor market volatility and tariff uncertainties are affecting consumer outlooks [5] Consumer Behavior - Recent research shows that nearly 25% of households struggle to manage monthly bills, and half have minimal savings to cope with rising costs [6] - Financial instability is not confined to low-income groups, as over one-third of adjustable-rate mortgage borrowers earning more than $100,000 report living paycheck to paycheck, highlighting a broader trend of financial fragility [7]