Real estate prices remain high and unemployment is low – at least for the moment. But since the start of 2022, consumers have faced some of the highest levels of inflation that we have seen in the last 40 years. Two key factors are behind these record high rates.

The COVID-19 pandemic had consumers buy goods over services. As a result, the global economy began to see inflation associated with the lack of availability of these goods. When the Russia-Ukraine conflict hit global trade in February, its shock lengthened those supply chains and distorted the economy further. With that, inflation really took off and it continues to weigh on consumer confidence as well as their lack of confidence in the equity markets. All the signs point to people feeling far more negative about the future than what the economic data currently points to, and there's a definite dissonance between the two.

The latest episode of Living Beyond Borders, a special podcast series from GZERO brought to you by Citi Private Bank, looks at the inflation outlook versus consumer sentiment, and what we can expect in the year ahead. Moderated by Shari Friedman, Managing Director of Climate and Sustainability at Eurasia Group, this episode features David Bailin, Chief Investment Officer and Head of Citi Global Wealth Investments and Rob Kahn, Director of Global Macroeconomics at Eurasia Group.