Why inflation doesn't feel the same for everyone

Inflation isn’t just something you hear about in the news — it’s something you experience in your everyday life.

It shows up in your grocery bill, your rent, and the cost of getting through the week.

And depending on your situation, it can feel harder for some people than others.

If you’re on a fixed income

If you’re on a fixed income – like if you’re retired or are studying – it can feel like your money isn’t stretching as far.

You might notice:

• more of your money going towards essentials like food, rent, and power.
• you have to make tougher choices about what you can afford.
• there is less room for unexpected costs.
• small price increases adding up quickly.

If you run a business

Small businesses like your local cafe often have less of a buffer to manage high inflation pressures.

You might notice:

• higher costs for supplies, wages, and rent.
• you're having to make hard decisions about raising prices or taking less profit.
• putting off big decisions or investments because things feel uncertain.

If you’ve just bought your first home

If you’ve just bought your first home, you might have a pretty big mortgage. If inflation is already high or expected to be, we probably have been increasing interest rates to keep inflation low and stable.

You might notice:

• you are spending more on everyday essentials.
• higher interest rates making your mortgage repayments higher, and the smaller amount that’s left being stretched further on other expenses.
• your income going up, but maybe not as fast as general prices.