Inflation measures a basket, not your exact shopping bill
Inflation describes a rise in the general price level, usually measured using a weighted basket of goods and services. If that basket rises from ₹1,000 to ₹1,050, its increase is 5%. Your own costs can rise faster or slower because your spending mix is different.
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The basket matters
A price index combines many prices into one measure. Each category has a weight, so a large spending category affects the result more than a small one with the same percentage price change.
Suppose a simplified basket contains ₹600 of food and ₹400 of transport. Food prices rise by 10%, while transport prices stay unchanged. Buying the same basket now costs ₹1,060, an increase of 6%.
That does not mean every price rose by 6%.
- Food became more expensive.
- Transport did not change.
- A household spending more of its budget on food could experience a larger increase.
An inflation figure is a summary of a defined basket over a defined period. It is not a promise that every household's expenses moved together.