A popular post on r/wallstreetbets[1] summarizes Michael Burry’s thesis that CPI (consumer price index) is unaffected as long as inflation isn’t directly impacting consumers of the bag of goods that make up CPI. When there are fewer jobs, these consumers aren’t able to influence the prices of these goods (because they aren’t being paid inflated wages), and the metric commonly used to evaluate inflation is unchanged.
[1] https://www.reddit.com/r/wallstreetbets/comments/lr8h1v/why_...