Normalizing High Inflation 2/5/26

Summary

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Podcast Summary: Your Money Minute – "Normalizing High Inflation 2/5/26"

Host: Jessica Ettinger, CNBC
Guests/Contributors: Jim Cramer, Carl Quintanilla, Rick Santelli
Date: February 5, 2026
Duration: ~60 seconds

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Episode Overview

This episode of Your Money Minute tackles the pressing question facing American consumers and investors: Is persistent, higher inflation now the "new normal"? CNBC host Jessica Ettinger unpacks recent inflation data, expert insights, and shifting expectations for the future of U.S. prices.

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Key Discussion Points & Insights

1. Current Inflation Status

• The latest PCE (Personal Consumption Expenditures) inflation rate is at 2.8%, noticeably above the Federal Reserve's 2% target.
  • [00:00] Jessica Ettinger sets the stage:

    “Americans have been screaming about inflation.”

2. What’s Driving Inflation Right Now?

• Shelter and groceries are highlighted as the main categories with persistently high prices.
  • [00:16] Jim Cramer & Carl Quintanilla comment:

    “Shelter still too high. Food at home still too high. Yeah. Grocery? Yeah. 7, 10. That's the biggest monthly gain in about three years. Food's too high. A lot of that is tariffs.”

• The hosts point out that grocery prices are seeing their biggest monthly jump in years, fueled in part by tariffs.

3. Comparisons to Pre-Pandemic Era

• Many Americans nostalgically recall the low-inflation days of 2019, when rates hovered at 1.4%.

  • [00:28] Jessica Ettinger notes:

    “Some people long for 2019 before the pandemic, when you barely felt prices going up with a measly wonderful 1.4% inflation rate.”

• The path of inflation:

  • 2023 opened with inflation over 2.8%, dropped until April when tariffs were announced, then rebounded.

4. Expectations for the Future

• Will inflation ever return to 2%?
  • There’s skepticism among experts that the U.S. will achieve the Federal Reserve’s target anytime soon.
  • [00:53] Rick Santelli (CNBC) weighs in:

    “Likely we're not going to be getting to the Fed's target in any quick fashion. I think ... somewhere between 2 and 3, as high as 3, is going to be the new normal and we're just all going to have to get used to that.”

5. What Does “New Normal” Mean for Households?

• Consumers may need to adjust expectations and behavior as higher inflation persists.
  • [01:12] Jessica Ettinger summarizes:

    “So is high inflation the new normal? Some think yes. And the farther we get away from that sweet pre pandemic low inflation, the more we're just going to deal with it being higher.”

  • [01:25] Rick Santelli advises:

    “So what's the real answer for all grown up about this? We're going to have to be pat[ient]. As these prices and various aspects of things like the housing industry become the new norm and we become less sensitive to where history has been...”

6. Where to Monitor Inflation

• Listeners are encouraged to stay updated:
  • [01:40] Jessica Ettinger:

    “Keep up on the inflation rate at cnbc.com.”

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Notable Quotes

• Jim Cramer & Carl Quintanilla on groceries:

  “Grocery? Yeah. 7, 10. That's the biggest monthly gain in about three years. Food's too high. A lot of that is tariffs.” (00:16)

• Rick Santelli on future inflation:

  “Somewhere between 2 and 3, as high as 3 is going to be the new normal and we're just all going to have to get used to that.” (00:53)

• Jessica Ettinger on adjusting to inflation:

  “The farther we get away from that sweet pre pandemic low inflation, the more we're just going to deal with it being higher.” (01:12)

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Key Timestamps

• 00:00–00:16: Introduction; headline inflation rate update
• 00:16–00:28: Detailed inflation drivers (shelter, groceries, tariffs)
• 00:28–00:53: Historic comparison to 2019, post-pandemic trends
• 00:53–01:12: Expert perspective on what the “new normal” might be
• 01:12–01:40: Implications for consumers and final advice

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Summary Takeaways

• Persistent inflation above 2% appears here to stay, with experts suggesting Americans may need to accept a higher “normal.”
• Shelter and grocery prices remain notably elevated, with tariffs intensifying food price inflation.
• Historical context shows just how much the inflation landscape has shifted since pre-pandemic lows.
• Adaptation in consumer mindset and strategy is advocated, given that inflation is unlikely to return to historic lows soon.

For ongoing updates, listeners are directed to cnbc.com.

Transcript

[A]

With a CNBC you Money minute, I'm Jessica Ettinger. Americans have been screaming about inflation. Here's CNBC Mad Money host Jim Cramer and CNBC's Carl Quintanilla on the latest PCE inflation number sitting at 2.8%.

[B]

Okay. Shelter still too high. Food at home still too high. Yeah. Grocery? Yeah. 7, 10. That's the biggest monthly gain in about three years. Food's too high. A lot of that is tariffs.

[A]

Some people long for 2019 before the pandemic, when you barely felt prices going up with a measly wonderful 1.4% inflation rate. Last year, inflation started at more than double that, ticked lower until April when the tariffs were announced, and then it started going back up. The dirty little secret now about inflation, even though the Fed wants it back down to at least 2%, some say that's never going to happen, that most.

[B]

Likely we're not going to be getting to the Fed's target in any quick fashion. We I think there are certain areas that over time on a very long glide path can get closer to 2%. But I think that somewhere between 2 and 3, as high as 3 is going to be the new normal and we're just all going to have to get used to that.

[A]

CNBC's Rick Santelli. So is high inflation the new normal? Some think yes. And the farther we get away from that sweet pre pandemic low inflation, the more we're just going to deal with it being higher.

[B]

So what's the real answer for all grown up about this? We're going to have to be pat. As these prices and various aspects of things like the housing industry become the new norm and we become less sensitive to where history has been, you can.

[A]

Keep up on the inflation [e-mail] I'm Jessica Ettinger, CNBC.

[C]

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