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

The CPI is composed of eight major groups. Some of these have gone up considerably, some have not. But, even 4% inflation over five years would mean a 22% increase in prices over that time frame.

Food and beverages (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)

Housing (rent of primary residence, owners’ equivalent rent, utilities, bedroom furniture)

Apparel (men’s shirts and sweaters, women’s dresses, baby clothes, shoes, jewelry)

Transportation (new vehicles, airline fares, gasoline, motor vehicle insurance)

Medical care (prescription drugs, medical equipment and supplies, physicians’ services, eyeglasses and eye care, hospital services)

Recreation (televisions, toys, pets and pet products, sports equipment, park and museum admissions)

Education and communication (college tuition, postage, telephone services, computer software and accessories)
Other goods and services (tobacco and smoking products, haircuts and other personal services, funeral expenses)