The Inflation Numbers We Feel

Inflation hits differently depending on where your money goes. This month's chart, built from Bureau of Labor Statistics data, tracks 25 years of price changes across three personal spending categories and compares them to headline CPI (Consumer Price Index), the government's broad measure of overall inflation. Two of the three came in below that benchmark over the full period, and one didn't come close. 

Pet Care

The 2022 and 2023 price spikes in pet care were real and noticeable. However, stretched across 25 years, the picture is more reassuring. The chart shows that $20 spent on pet products in 2001 would cost roughly $32.80 today. Under headline CPI, that same $20 would cost roughly $36.28. Despite the recent spikes, pet care costs came in below the broader inflation rate over the full period.

Personal Care Products

Personal care products followed a similar pattern, and then some. Prices came in below headline inflation in 24 of the past 25 years. In nine of those years, prices actually fell. That $20 cost from 2001 increased to $22.82 by 2025, a cumulative increase well below what most people would guess.

Groceries

Food at home tells a different story. In 2022, grocery prices rose 11.4 percent, more than three points above headline CPI's already historic 8 percent. For many households, that year landed considerably harder than the national average reflected. Groceries are a reminder that some categories don't follow the broader trend, and that the headline number doesn't capture everyone's experience equally. 

What This Means for You

Inflation itself lands differently depending on how you actually spend. A retiree, a young family, a pet owner, a renter: each felt the last few years differently. And it's not just these three categories. Healthcare, housing, and utilities can each drift from the headline number in ways that quietly reshape a budget over time, sometimes for better, sometimes for worse. 

That drift matters most in retirement. That's why we create retirement strategies like yours, with inflation's potential impact on purchasing power in mind. 

^{Source: U.S. Bureau of Labor Statistics, BLS.gov, 2026}