WHAT IT MEANS FOR CONSUMERS
Even so, households are likely to be particularly sensitive to any increase in prices.
While inflation measures the rate of change in prices, it is the price level that shapes lived experience. Once prices rise, they tend to remain elevated, with energy prices being a notable exception.
Official inflation figures also reflect a broad basket of goods and services, including items such as electronics and furniture that are purchased infrequently. By contrast, the everyday essentials that dominate household budgets – food, transport and utilities – are rising faster than overall inflation, shaping a sense that costs are climbing more rapidly than headline numbers suggest.
