The battle against inflation is at the forefront of President Joe Biden’s economic messaging, but while prices have fallen from their four-decade highs, Americans are still feeling pinched.

The government reported Thursday that annual inflation climbed 3.2 percent in July — higher than the 3 percent increase notched in June yet below what economists had anticipated. So-called core inflation — which removes volatile food and energy prices — matched a two-year low.

Yet consumer sentiment, while improving, is “still below our pre-pandemic levels,” Joanne Hsu, who oversees the University of Michigan’s widely cited consumer survey, said in an interview before Thursday’s release. “I don’t think that’s terribly surprising given that prices still remain quite high.”

Americans give more weight to their ability to stretch their income than to federal data on inflation. While the cost of key goods and services has stabilized, prices at grocery stores, restaurants and the gas pump are still much higher than they were before Covid-19 rocked the economy. Overall, consumer prices have jumped by around 17 percent since February 2020.

[The gist is basically “Hey, you all still have jobs and inflation has ‘eased a bit’! Whachoo bitchin’ about? Lay off the old man!” And a correction to the COVID core inflation number – CPI since 2020 is up 18.7% not 17% – “easing” is in the eye so the beholder. ~ Beege]