Statistics Canada produces the Consumer Price Index (CPI), a key economic indicator used to measure changes over time in the cost of consumer goods and services. It can be used to track changes in purchasing power, and has been in existence in its current form since 1914. The CPI basket has been continually modified over the Century in response to changes in consumer spending and technical progress. The builders of the CPI have worked to create a reliable and accurate index to meet the needs of users.
They also provide a Personal Inflation Calculator as of this writing (May 2023) that doesn't strip out those "volatile" factors that still affect every household.
While we don’t have the resources of a national statistical bureau we do have our own detailed records. So this is a case study of our situation, two early-retiree’s living off pensions. The question: Does the combination of our incomes, shopping strategies and government programs keep pace, lose ground or gain on inflation?
Our "personal" CPI [OFHInflation] is based on a simple measurement: Take a small sample of things we buy regularly, combine them to a total and see how that total changes over time. Using our historical receipts we use the prices on the receipts. "Ah..." I hear you say, "But you might shop at a cheaper store, buy more in bulk, etc, etc.". Yes, those are all strategies we employed to control our expenses. Compared against "official" CPI for our province over the same time were we able to keep our head above water?
What we did to keep the cost of inflation under control in our kitchen.
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