Why the inflation in the statistics differs from the inflation we feel
The government reports inflation of around 2 percent, yet many people leave the grocery store feeling that prices have risen far more. Are the statistics wrong, or is our impression wrong?
The More Often You Buy It
Economists say both are right. Price statistics include everything, even costs paid once a month such as rent, phone bills, and tuition. But we feel inflation in front of the vegetables, fruit, milk, and bread we buy every day. Prices of these items swing widely with the weather and the seasons.
People judge the whole economy by the prices they see most often.
An economics professor
How to Cope With Grocery Prices
- Build your shopping around seasonal produce
- Get in the habit of comparing unit prices
- Plan the week’s meals ahead and buy only what you need
- Track food spending separately in your budget
We cannot bring prices down ourselves, but we can decide how to fill our own grocery cart. Habits protect a household’s budget before numbers do.
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