Inflation at highest since 1981. How does your personal rate compare?

Inflation jumped to a new 40-year high in June, the U.S. Bureau of Labor Statistics reported Wednesday. That means the prices Americans pay at the gas pump, grocery store and elsewhere have been rising much faster than normal this year.

That may lead you to wonder: How much have my personal household costs increased, and how does that stack up against the average American’s?

Calculating your personal inflation rate can help answer these questions.

The Consumer Price Index is a common inflation measure. Households paid 9.1% more money in June 2022 for a broad basket of goods and services relative to that same basket in June 2021 — the largest annual jump since December 1981.

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However, your basket is likely different. For one, purchases and consumption habits vary from household to household, based on factors such as income, age and geography, according to Brian Bethune, an economist and professor at Boston College.

This means your personal inflation rate likely diverges from the U.S. average, too.

There are a few ways to calculate your inflation rate. The pitfalls of such a calculation came into focus earlier this month when Nikki Haley, former U.S. ambassador to the United Nations during the Trump administration, tweeted an incorrect estimate for a July Fourth cookout.

(Her tweet, which has since been deleted, pegged a barbecue as 67.2% more expensive relative to last year. By comparison, the American Farm Bureau Federation said costs had increased 17% — a much smaller rise, though still elevated. President Joe Biden cited that agriculture trade group in 2021 when the White House said costs for an Independence Day BBQ had decreased 16 cents relative to 2020.)

Here’s the simplest way to get a rough estimate of your personal annual inflation rate, according to economists.

1. The first step is to determine how much of your spending falls into certain categories or buckets, such as food, energy, clothing, housing and entertainment.

   To do this, you’ll need to consult your bank and credit card statements for the past year to find exact spending amounts. The U.S. Bureau of Labor Statistics publishes a detailed list that can help you itemize your purchases by category.

2. Calculate your category “weights.” This weighting is basically the share of your spending devoted to specific buckets. (The consumer price index calls this weighting “relative importance.”)

   To do this, tally your total spending within categories. Divide each number by your aggregate annual spending to calculate the category weight.

   For example, let’s say my total household spending from June 2021 to June 2022 was $50,000. I spent $17,000 (or 34% of the total)…