How can inflation be only a few percentage points and yet many goods and services are up over 50% since 2019?

Question

How can inflation be only a few percentage points and yet many goods and services are up over 50% since 2019?

In: 187

Answer 1

This is because inflation is indexed to a basket of goods. Not all of those items have uniformly risen in price. So the items you noticed more are the ones that have had a larger rise. But the items you don’t notice are the ones that have stayed pretty much the same.