The Consumer Price Index (CPI) measures inflation by tracking prices for a "basket" of goods and services. But the official basket may not match what your family actually buys.
What's in the Basket?
The CPI basket includes hundreds of items: housing, food, energy, transportation, medical care, clothing, entertainment, and more. Each category is weighted based on average consumer spending patterns.
The Problem with Averages
A family spending 40% of their income on rent experiences housing inflation very differently than someone who owns their home outright. The official CPI uses average weights, which may not reflect your situation.
Essentials vs. Discretionary
Bureau of Labor Statistics data shows that prices for "essentials"—housing, food, energy, healthcare—have historically risen faster than non-essential items like electronics or entertainment. Since lower-income households spend a larger share on essentials, they often experience higher effective inflation.
Our Approach
Our "Essentials Cost Pressure" metric specifically tracks inflation for unavoidable expenses. This shows what families actually feel, rather than an average that includes things people can choose to delay buying.