Why do consumers think differently about inflation from central bankers?

 

from Daily Chartbook 

"Normal people have a different way of looking at inflation compared to economists/central bankers."

- Dario Perkins, TS Lombard

This is a great way of thinking about how different groups view inflation differently. Central bankers are interested in the current rate of inflation. For them, the past is the past. Nothing to solve there. Consumers are worried about the level of prices. The past is important. Their concern is about whether prices will fall to old levels. Of course, wages may have increased, but consumers are smart enough to know that if real wages don't increase, it does not matter. Consumers also care about the inflation of repeat purchases. These prices stick in their minds.