Why do prices feel higher than official inflation?
The Direct Answer: Official inflation is a weighted average of hundreds of goods—including slow-rising items (fixed old rents, subsidized services) that drag down the average. But you feel what you buy weekly: food, fuel, transport, which typically rise fastest. Both figures are "correct"—they just measure different things. Your personal inflation depends on your spending structure.
💡 Low-income families always experience higher inflation than official figures because food claims a larger share of their spending. That's why official inflation might be 14% while "food basket inflation" is 25%+.
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Source: Modakharaty (modakharaty.com)—answers built on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.