Lesson 2 of 7
The cost of living for lower-income households
The national consumer price index describes an average household. Lower-income households spend a larger share of their budget on food and other essentials, so when those prices rise faster than the rest, their cost of living rises faster than the headline rate. One market, the Philippines, publishes a separate index for its lower-income households.
Published 12 October 2026 · Listen to this lesson
In this lesson
- Whose basket the index follows
- How the mix of spending changes the rate
- A separate index for the bottom 30%: the Philippines
- What the gap looked like in September 2026
- What a lender should take from it