You remember the big prices. Rent. Groceries. Fuel. When they go up, you feel it.
The small ones move quietly. And they add up to more than the big ones over a year.
A coffee that was $4.20 last year is $4.90 this year. That’s 16% inflation. On one item.
A sandwich that was $12 at lunch is $14.50. That’s 21%.
A can of Coke that was $2.80 is $3.50. That’s 25%.
These numbers are real. Checked against ABS data from 2023 to 2025 in Australia. Similar patterns exist in every developed country.
The official inflation rate is often 3 to 4%. That’s an average. Small repeat purchases, especially food and beverages consumed out of home, have been running at 10 to 25% a year. You don’t see it because you don’t record them. You just notice “everything feels expensive lately”.
Here’s the maths. A $5 daily coffee habit in 2022 cost $1,825 a year. The same habit in 2026 costs $2,555. That’s $730 more for the identical habit, just through quiet price increases. Nothing else changed about your life.
Rule
The big purchases you shop for. The small purchases you forget about. That’s where most of your inflation exposure lives.
Action for this week
Track every out-of-home food and drink purchase for one week. Multiply by 52. Compare to what you’d have said you spend. The gap is your invisible inflation exposure.
Next week
The biggest financial mistake I’ve made, and what it taught me.
Know someone feeling broke despite a stable income? Forward this.
P.S. The fastest-growing category of inflation in most developed economies since 2022 is “food and beverages consumed out of home”. The second is insurance. The third is childcare. The headline rate of 3% hides these.
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Decide Your Money Educational content only. Not financial advice. Decide Your Money is not a licensed financial adviser. Speak with a qualified professional before making financial decisions.