Definition of Personal Inflation Rate

Personal inflation rate by definition is very easy to understand and makes perfect sense actually. Below is an explanation I found online.

The term personal inflation rate is used to describe the rate of a particular price increases in the market for individuals, couples, and families. The best way I can describe personal inflation rate is to give to examples. I will do so below.

The personal inflation rate for a young couple with children in their early twenties is much much higher than the personal inflation rate of an elderly retired couple. The retired couple does not have the same expenses as the young family does and most importantly will not have the same expenses going forward and into the future. In the example of the young couple however they will be spending a lot more money coming in the future on food, clothing, medical expenses, possible second vehicles, toys, activities, and entertainment.

The young couple will have to support their children to school and perhaps their college and/or university education. The young couples always have more expenses because they use a lot more water, electricity, and every day utilities.

This is important because banks will use this term "personal inflation rate" when they are evaluating your ability to pay back your loan, make your mortgage payment, make your car payment, or any other kind of personal financing you need.

I have not seen this description very much online so I thought I would reiterate this definition today.