Why do consumers overestimate inflation?

The blue line is the consumer survey about inflation. The yellow and red are actual inflation.
Robert Waldmann at Angry Bear wants to know.

Answer: Money is illiquid and cannot catch growth. So regions with growth have higher economic activity and less money report, they report disinflation. Regions with negative growth have less economic activity with more money, they report  report inflation. Money is late to the game. So the equation is the rate of change in relative growth and the inefficiency of money. It growth is concentrated, and fast moving, more people in low growth regions will report inflation and fewer folks in high growth regions report disinflation.

 Look at the regional growth chart. Blue is high growth. The colors are not always like this, so the colors move in regional patterns.  But currently more growth in in the west, away from the financial center of the east. I would ex[cy more reports of inflation and fewer of disinflation.

This would average out anyway. so I am still not sure of the whole story here. BLS weighting by share of family budget likely has something to do with it. The Michigan survey was a questionaire about prices, not an actual measurement of things purchased.  Consumers in regions of slow growth will see and report higher prices but are unlikely to buy everything in the price list due to high prices.