Inflation Is Up 3.7%. Unless You’re the One Paying for It.
Inflation rose to 3.7% in September, up from 3.4% in August and above economists’ expectations. Gasoline prices are up more than 34% over the past year, while shelter costs have risen just 3.2%, according to the Bureau of Labor Statistics.
While that’s a big difference, there’s another difference not getting enough attention: the inflation rate you experience may have very little resemblance to the national average. It’s a disconnect that SchiffGold recently explored in its coverage of September’s inflation report.
Consider a 35-year-old living in Chicago with two children under five. He’s renting a three-bedroom apartment, paying for daycare, buying groceries for four, and perhaps looking to purchase his first home.
Now consider a 55-year-old living in suburban Ohio, fifteen years into a 30-year fixed-rate mortgage. His children are grown, his mortgage payment hasn’t changed in years, and he’s not particularly interested in moving.