1. Posted on 16 August, 2012

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    Everybody talks about food and gas prices when they’re rising. Think of gas prices in the past few weeks, and earlier this year. But, somehow, we don’t hear so much about gas prices falling, as they did for much of the spring.

    “People focus on bad news more than they focus on good news,” Paul J. Healy, an Ohio State University economist who has studied how people perceive inflation, told me. “When prices go up, they notice it. When prices go down, they don’t care.”

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    Everybody Always Thinks Inflation Is Higher Than It Really Is