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EVERYDAY ECONOMICS · 4 MIN READ

Why your money buys a little less

Inflation slowing down does not always mean prices are falling.

Prices and the pace of change

Inflation describes changes in a price index. If inflation slows while staying positive, the average price level is still rising, just more slowly.

Your basket is personal

National consumer-price indices measure representative baskets. Your spending on rent, transport and food can differ from that average.

Explore a scenario

Use the inflation calculator for your own assumptions. Historical comparisons require compatible, reviewed CPI index values; a year-on-year percentage is not a monthly index.

Examples use LSL. No current market rates, fuel prices or CPI values are claimed. This is general education, not a personalised recommendation.

Explore the idea yourself

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