The national inflation rate ended 2022 at 6.5%, after peaking at 9.1% in June1—a rate not seen in more than 40 years.
But not everyone experiences inflation in the same way. You may find your expenses rising faster than your friend in another part of the country or more slowly than your next-door neighbor.
Our analysts parsed mountains of government data on inflation rates and spending patterns. Here are 4 key factors they identified that can make inflation different for everyone.</>
- Where you live: Inflation varies widely by region. The northeast tends to have lower inflation than the national average, while the southeast and mountain west tend to be higher.
- How old you are: People spend money on different things at different stages of their lives. We used data from the US Bureau of Labor Statistics to inform how people in various age groups tend to spend their money.
- Do you rent or own? If you're renting you aren't insulated from price increases as much as you are if you own, and especially if you've paid off your mortgage.
- How much do you drive? The price of gas was a huge driver of inflation in the past year.
Answer these 4 questions and get an estimated inflation rate that may better reflect the impact of rising prices on people like you than the national headline inflation rate. Knowing where you stand can help you plan.
Give it a try below:
This tool was designed to educate consumers about how much the rate of inflation can differ from one individual to another. It does not consider any individual’s specific situation. It produces customized inflation based on cohort spending data, with cohorts created using census region, age, housing situation, and gasoline consumption. Our estimate is based on inflation rates published by Bureau of Labor Statistics and spending patterns among various demographic groups developed by Fidelity’s Financial Solutions team. The tool uses inflation rates in the 9 census divisions as of December 2022. Spending patterns by age are based on consumer expenditure surveys (CEX) in 2020 with adjustments to account for price changes from December 2020 to December 2022. Some cohorts may have limited data, in which case spending patterns of similar cohorts without gasoline usage are used. The tool is for educational purposes only. The results are based on statistical sample of a survey data and your personal situation may be different. The tool does not predict future inflations.
Surprised by the results?
Read more about why everyone experiences inflation differently. And get more resources on the outlook for inflation and how to manage the impact of rising prices on your finances in our special report, Inflation and you.