How Much More Expensive Has Life ACTUALLY Become Since 2020?

July 13, 2026

AI Summary

5 min read

In 2020, a $100 bill bought you $100 worth of stuff. By mid-2026, that same $100 bill buys about $77 worth of goods. That 23% loss of purchasing power in just six years is the headline number, but as Andrew from the Personal Finance Podcast explains, the real story is far more brutal than that single statistic suggests. The official Consumer Price Index (CPI) shows cumulative inflation of roughly 29% from early 2020 to mid-2026, but that number feels like a lie to most households because it masks the categories where costs have exploded.

Why the Official Number Feels Wrong

The CPI is an average, and averages hide the pain. Andrew breaks down three reasons the 29% figure feels disconnected from reality. First, weighting: the CPI is an average basket of goods. If you don't buy electronics often, and those prices have actually fallen, the average gets pulled down. Second, quality adjustments: when a smartphone gets better but costs the same, the Bureau of Labor Statistics records that as a price cut. That is great for the statistic but does nothing for your wallet. Third, and most importantly, your personal basket is not the national basket. If you have a mortgage, two cars, young kids in daycare, and you eat out, your personal inflation rate is radically different from a retiree who owns their home and rarely drives. The national CPI is an average; your lived ex

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What you'll learn

1 (00:00) **Episode Introduction & Thesis** - Andrew introduces the episode's goal: to quantify exactly how much more expensive life has become since 2020.
2 (02:48) **The Headline CPI Number** - Overall CPI is up roughly 29-30% from early 2020 to mid-2026.
3 (04:34) **Why the CPI Feels Like a Lie** - The average CPI understates the real pain for most households.
4 (09:16) **Category 1: Housing** - The single biggest reason most people feel financially stretched.
5 (15:55) **Category 2: Food** - Grocery prices are up 27% overall, but key items have surged far more.
6 (23:56) **Category 3: Transportation** - A major wealth killer, with new and used car prices surging.
7 (29:20) **Category 4: Insurance** - A stealth cost that has risen dramatically across all types.

+ Full timestamped outline available in the app

Show Notes

That $100 you had in 2020 only buys $77 worth of goods today. Here is exactly how much more expensive every single category of your life has become since then.

👉 Join Andrew’s FREE Investing for Beginner’s Masterclass: https://event.webinarjam.com/q05p7/register/0o8z9io?webinar_id=21

What You'll Learn in This Episode

Why the 29% inflation number feels like a lie and why it actually is for most households
How home prices rose 53% and why today's buyer finances $100,000 more than six years ago
The grocery items that got hit hardest and why your personal food inflation is higher than the average
Why the average new car payment is now $750 to $940 per month and how to win with cars instead
How childcare now costs more than in-state college tuition in 38 states
The insurance categories quietly draining your budget without you even noticing
What actually got cheaper since 2020 and how to use it to your advantage right now

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Episode/s Mentioned

Is the American Dream Dead? (With Freddie Smith) https://youtu.be/3Ivz8Ts9J2o

The Insurance Crisis Nobody Is Talking About (With Bob Litterman) https://youtu.be/gBuIOQKQgFM

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