Inflation reached the highest rate since 1981 today, hitting 9.1%.
While that number may sound high, you may be wondering why it feels like inflation is way higher. The answer is that it is way higher.
Take a look at the CPI, and you’ll find energy costs in total are up over 40%.
Now consider that streaming services like Netflix are included in the CPI, and are not raising their prices. The presence of non-essentials in the consumer basket artificially deflates the overall inflation rate.
The CPI is convenient, but it doesn’t necessarily tell the whole story. Unfortunately in this case, the reality is worse than it may appear.
Where is inflation hitting hardest for you? Share your thoughts and join the conversation on tpn.net today.