What is the Personal Inflation Rate Calculator?
A spending-weighted inflation illustration using the tool's fixed category assumptions. It does not fetch current CPI, measure your actual price changes or predict future inflation.
How does it work?
Entered category spending is used as weights for the fixed category inflation assumptions. The weighted rate is applied over the entered number of years to illustrate future monthly spending. The displayed comparison assumption is not current official CPI.
Worked example
If the same amount is entered in two categories, each receives half the weight. Their fixed inflation assumptions are averaged; entering twice as much in one category gives it twice the weight. This is model arithmetic rather than observed inflation data.
When to use this calculator
- 1Explore how spending composition affects a fixed-assumption illustration.
- 2Compare future spending at different horizons without treating the result as a price forecast.
Common mistakes to avoid
- ✕Calling the result measured personal inflation or live CPI.
- ✕Treating the category assumptions as verified current prices.
- ✕Double-counting the same expense in multiple categories.
Frequently asked questions
- Does the tool use current CPI data?
- No. It uses fixed category assumptions and a comparison assumption, not a live official feed.
- Can one spending category be used?
- Yes. Entered positive categories determine the weights; unused categories can remain zero.