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

Suppose we are back in April 2021.

Then we wait 3 years, and during those 3 years we have inflation rates of 8% in 2021, 19% in 2022, and 11% in 2023 (the numbers you gave as examples).

We are now back in April 2024, and those 3 years of inflation combines to ~43% inflation compared to 2021 prices (you compound them, rather than add them). That is close to the 50% you perceive.