The new inflation numbers were just released for July and they show 3.2% inflation since last year, and 15% higher prices since Biden came into office.

But almost no one in the middle class believes these numbers. Why?

The CPI measures hundreds of different products and takes a composite of the price changes for all of them.

But the “must pay” routine bills are rising a lot faster than the bills for more elective expenditures. The chart below shows what the biggest price increases have been. Gasoline prices are up 36%, rent is up 32%, eggs, cereal, coffee, used cars are up about 20% and electricity and utilities are up 22%.

Meanwhile, cell phones, information technology, televisions, computers, and communications have fallen in price. But in this financially stressed environment, food, gas, eggs, and rent are more important to the average family budget than TVs or computers.

The average price rise for food, gas, rent, and electricity are up more than 25%, not 15%.