CPI, inflation & IMAX: Why “fun” still feels expensive

The latest U.S. Consumer Price Index (CPI) report reveals that while inflation has cooled significantly from its 2022 peak, price levels remain elevated, driven by persistent demand and sticky service costs. Senior Economist Mike Hanson notes that although headline inflation is slowing, the cumulative 28% rise in prices since the pandemic continues to impact consumer affordability. Meanwhile, the phenomenon of "funflation"—rising costs in leisure and entertainment—reflects a broader trend of premiumization rather than just aggregate inflation. David Karnovsky, Head of U.S. Media, Entertainment and Advertising, explains that consumers are increasingly prioritizing experiences, allowing companies to segment audiences through premium offerings like IMAX 70mm screenings and high-end festival amenities. This willingness to pay for standout experiences sustains demand in the entertainment sector, even as broader economic pressures persist.