Jessica Mendoza

We're talking about the price of goods.

What about people's wages?

How is that keeping pace with inflation, if at all?

While prices had risen 4.2% compared to a year ago, average hourly earnings had only increased by around 3.4%.

And is that why Americans are feeling the strain right now?

Like, even if the metrics show the economy is technically strong, if wages aren't keeping pace with inflation, sort of, is that the pain point?

A spokesperson for the White House said the Trump administration's agenda is to deliver economic relief to Americans and that President Trump has, quote, always been clear about the fact that oil and gas prices and thus overall inflation will rapidly drop as soon as the Iran situation is resolved.

Normally, when consumer sentiment is down, the economy starts to see signs of slowing.

But Harriet says that's not happening, because even while many Americans complain about feeling broke, spending hasn't slowed.

Why not?

That's after the break.

On the sparkling beaches of South Padre Island in Texas, where Harriet recently spent a long weekend, you can slurp down oysters on the half shell and gaze across the water at the multi-billion dollar SpaceX rocket tower.

America is in the grips of 4.2% inflation, but you wouldn't necessarily know it here.

South Padre Island isn't the whole U.S.

economy, of course.

But Harriet kept running into the same puzzle in her reporting.

For all the anxiety about inflation, for all the complaints about higher prices, some people keep opening their wallets.

Basically, the economy isn't treating everyone the same way.

One arm in the K points up, the other line points down.

Typically, when prices are rising too fast, the Federal Reserve steps in.