Personal inflation
CPI vs Personal Inflation What Is the Difference Guide
This CPI vs personal inflation what is the difference explainer shows how a national CPI differs from your weighted basket, where each fits, and how to read a housing-heavy example safely.
Published: January 7, 2026 · Updated: January 7, 2026 · By FinToolSuite Editorial
Calculate your personal inflation
See how your basket compares to CPI and how it affects real income.
Disclaimer
- Educational only. CPI and personal inflation measure different things. No guarantees.
- Examples are illustrative, not forecasts.
- Review the Privacy Policy before entering data.
CPI vs personal inflation: core difference
CPI reflects a national, population-level basket. Personal inflation reflects your basket with your weights. CPI is helpful for context and headlines. Personal inflation is better for your budget and real income comparisons because it uses your mix of spending.
Housing-heavy example
CPI headline: 3%. Your basket: housing 45% at 8%, groceries 20% at 4%, transport 15% at 2%, other 20% at 2%. Personal inflation rounds to about 5%. Housing’s high weight pushes your rate above CPI, similar to the housing squeeze example.
When to use each
- Use CPI for broad trends, policy updates, and benchmarking.
- Use personal inflation for your own budgeting, real income checks, and scenario comparisons.
- Combine both to see how national trends differ from your reality.
Run your numbers in the tool and read the FAQ page for more context.
FAQs
Why might my personal inflation be higher than CPI? ▼
If your basket leans into categories that rose faster than the national average—like housing—you’ll see a higher personal rate.
Can personal inflation be lower than CPI? ▼
Yes. If your big categories rose less than the national mix, your weighted rate can run cooler than CPI.
How do category weights change the result? ▼
Bigger spend categories pull more weight. A high inflation category with a big share can move your personal rate sharply.
What if CPI falls but my basket rises? ▼
It can happen if your categories behave differently from the national mix. Use your personal inflation to see your reality.
Where should I start? ▼
Open the tool, enter your categories, and compare your rate to CPI for context.
See your basket vs CPI
Enter your categories to calculate personal inflation and compare to CPI.
Next steps: read the personal inflation definition or learn how category weights drive your rate.