Not all inflation is the same

Today I read an article explaining why it is that many New Zealanders' experience of inflation feels worse than the headline numbers might suggest it should feel. Very topical, since there's an election coming and the cost of living is a big, big issue. And in this article we see how an increase in the cost of living can be quite different from an increase in prices generally (inflation). The gist of the article is that although wages and salaries have grown a little more than the overall price level in the last decade, housing, fuel and food prices have increased way more. It quotes someone from Westpac saying: "Even if discretionary items have become relatively cheaper, there’s less money left over to pay for them once people have taken care of necessities like groceries, rates and utilities, and transport costs." I notice this myself at the supermarket. Not just how certain things I like to buy are much more expensive, but the sad, worried look on many people's faces as they stare…