Why do the “official” numbers on food inflation state it’s gone up by tiny amounts like 8%, 19%, 11%, etc. but most of the foods I see has gone up by a minimum of 50%, 100%, 80%?

Question

Why do the “official” numbers on food inflation state it’s gone up by tiny amounts like 8%, 19%, 11%, etc. but most of the foods I see has gone up by a minimum of 50%, 100%, 80%?

In: Economics

Answer 1

I went through the top comments and I’m surprised that no one has mentioned a big part of this.

Food inflation is calculated not on a fixed set of goods, but goods can be switched in and out. What’s happened in the last few years according to some analysts is swapping for *cheaper* options (e.g. store brand vs name brand) has lowered the overall reported numbers.