Real Inflation: What You Actually Feel
Your Inflation > CPI
🏠 Housing
Rent
+8-15%/yr
Biggest Driver
Property Taxes/Insurance
+5-12%/yr
Maintenance
+5%/yr
🩺 Healthcare
Premiums
+5-12%/yr
Compounding
Deductibles/Co-pays
+8-15%/yr
Medications
+6-12%/yr
Out-of-network
+10-20%/yr
🍎 Food & Energy
Groceries
+8-15% swings
Volatile
Dining Out
+10-20%
Gas/Electricity
+10-30% swings
Utilities
+5-12%
🎓 Education & Childcare
Tuition
+6-10%/yr
Long-term
Childcare
+8-12%/yr
Extracurriculars
+5-10%/yr
Supplies/Fees
+5-10%/yr
Your Personal Inflation Calculator
- List last year’s total spend by category
- List this year’s total spend by category
- Calculate YoY change per category and overall
Personal Inflation = (This Year Spend - Last Year Spend) / Last Year Spend- Weight categories by your actual budget (not CPI weights)
- Housing alone can be 30-40% of your budget
Strategies To Beat Real Inflation
- Housing: Buy with fixed-rate mortgage when affordable; negotiate rent; consider moving cities
- Healthcare: Max HSA; shop plans annually; use generics; telemedicine
- Food: Bulk buy staples; cook at home; meal plan; reduce waste
- Energy: Insulate; efficient appliances; time-of-use plans
- Education: Scholarships; community college first; employer tuition benefits
Why This Matters
- If you plan using CPI (3%), but your real inflation is 8%, you’ll be short by 5% per year
- Over 10 years, that’s ~50% less purchasing power than planned