The Heritage Foundation has launched a groundbreaking tool, the Personal Inflation Calculator, designed to give Americans a clear understanding of how inflation has impacted their household budgets. This tool allows users to see the hidden “inflation tax” imposed by federal spending policies that have driven up costs across the board.

Parker Sheppard, Director of the Center for Data Analysis at The Heritage Foundation, emphasized that while the Consumer Price Index (CPI) reports a 21.1 percent rise in prices over the past four years, many individuals experience much sharper increases in essentials like groceries, gas, and rent. The new tool helps bridge this gap by offering a personalized assessment of inflation’s impact on household expenses.

To use the Personal Inflation Calculator, users can choose between a quick standard version or a detailed version for more precise results. After selecting their region or metro area from a dropdown menu, they can input monthly expenditures across various categories. For ease, the calculator also offers pre-selected expenditure profiles. Once filled out, the tool calculates how inflation has affected the user’s cost of living compared to a previous year or month.

The tool’s design reveals the invisible tax effect inflation has on Americans. As the government continues excessive spending, funded by printing more money, the value of the dollar decreases. This results in rising prices that hit everyday expenses, stretching household budgets thin. The calculator offers individuals the opportunity to see just how much of their income is eroded by inflation, providing valuable insight into the economic realities under current policies.

Inflation continues to be the number one concern for American families, with many struggling to keep up with rising prices. The Heritage Foundation’s Personal Inflation Calculator is a timely resource, empowering citizens with the knowledge of how federal policies are impacting their wallets.