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Inflation is highly personal: Why your personal inflation rate is what matters and how to calculate it
Synopsis
Inflation is an important element to estimate future expenses. Thus, it is important to get it right for correct future expenses estimation. However, CPI distils wide-ranging inflation rates of multiple items into a single number. This can possibly mask higher or lower inflation in certain items.
Don’t go by headline inflation numbers to estimate future expenses or ascertain your real rate of return and investment needs. Inflation is highly personal and can vary widely across households with differing consumption behaviours. ET Wealth shows why and how you should get a better fix on your own inflation rate.Items with disparate inflation rates are crunched into one figureConsumer Price Inflation distils wide ranging inflation rates of
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