The September 2025 Consumer Price Index (CPI) reading showed that inflation across all items increased by 3% year over year, but if it feels like your bills have gone up a lot more than that, you’re not alone. The rising cost of goods has been outpacing wage gains for many years, and Moose Money founder Julien Brault shared with GOBankingRates why inflation often feels worse than the numbers suggest.
Inflation Varies by Category
The official inflation rate reflects the average across all spending categories, but different types of purchases experience different inflation rates. For instance, food prices rose 3.1% year over year, while energy increased 2.8% year over year. While most products become more expensive during inflation, some categories see higher price hikes than others.
“Inflation isn’t one single experience,” Brault said. “It’s an average, and your personal inflation rate depends on what you buy, your location, and income. If a big sum of your budget goes to rent, groceries, gas, or utilities, and those categories jump, you feel it immediately. Lower-income households usually spend a higher share on those essentials, so price spikes hit harder and faster.”
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Location Also Plays a Role
Prices are influenced by supply and demand, and they tend to rise faster in cities with high populations.
“Location matters as well,” said Brault. “Housing and energy inflation can be wildly different city to city, so two people with the same salary can feel totally different pressure.”
Urban centers often experience higher prices since they’re heavily populated. However, rural areas can also feel the pinch due to fewer competitors operating in the area, which gives remaining businesses more pricing power. Your location affects how much costs will go up over time.
Examine Your Spending Habits
While housing, groceries and energy impact nearly everyone’s budget, other spending categories can also influence how inflation feels. Reviewing previous credit card statements can help you see where your money goes and make it easier to understand why inflation may feel worse than the averages suggest.
“Not all prices rise the same way,” Brault said. “Some categories jump a lot while others barely move or even fall, so CPI blends all of that together. Housing has the biggest effect because it is the largest expense for most households, and food and gas often swing quickly, which is why people notice them most.”
How To Keep Up With Inflation
Although rising costs aren’t your fault, it is still your responsibility to navigate this financial landscape and move toward meaningful long-term goals. It’s better to view inflation through the lens of what you can do rather than as an unbeatable force. Luckily, Brault shared strategies that can help you keep up with inflation and even get ahead of it.
“Keeping up with inflation usually means earning more,” he said. “That could be finding ways to increase income over time, whether that’s having a side hustle or moving to a higher-paying job. At the same time, letting all your savings sit in cash for too long can mean losing buying power when prices rise, so it helps to put some money into things that grow faster than inflation over the long run.”
Inflation can feel overwhelming, but understanding where your money goes and taking proactive steps, like reviewing spending, boosting income and investing wisely, can help you stay ahead. Focusing on what you can control, and you’ll be better positioned to protect your budget and work toward long-term financial goals even as prices rise.
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This article originally appeared on GOBankingRates.com: Here’s Why Inflation Feels Worse Than the Numbers Look, According to an Expert
