If we see so many price rises like utilities and your fruit and...

If we see so many price rises like utilities and your fruit and veg, why doesn't our money doesn't go as far, how can inflation be so staggeringly low?

We now know that the 'great unwashed' are experiencing inflation and real wage stagnation (or worse). It is the worst of worlds. A crippling squeeze on household budgets and demand which I would say is the need for Morrison flooding the economy with debt fueled spending far above requirements and under cover of covid. Why isn't it being covered by journalists?

While the Chanel class are experiencing the best of both worlds. Both deflation in their expensive consumables and negligible real increases in the labour inputs to the services they consume from medical treatments to restaurants to uber to food delivery. And with their income, in large part, tendered to the rampant asset inflation created by negative real interest rates and now QE from the RBA, as crowbarred by Morrison's fiscal approach, they are in the best of all worlds.

The implications are profound. The CPI underlies our interest rates, our wage increases, our house prices, our rents. our debt levels. Given the products used by the 'poor' are not the latest innovations, the deflation of 'up market' and luxury goods is distinct. Did you know that they measure the improvement of a good, say a piece of modern IT such as a phone, and may factor in the innovation of the good say from model 1.0 to 2.0, perhaps even if the price rises, as a price decline because the good has become better. Doesn't matter that it serves the same basic function of making calls, sending MMS, internet banking and ordering a pizza.

This is a tad esoteric (aka boring) but read on if you want to know. Straight from the RBA.

An Example of Quality Change

The quality of a good or service is determined by its features or characteristics from which consumers derive value. Consider the case of mobile phones. Each year or so, mobile phone manufacturers tend to release new models with improved features, such as faster processors and better cameras. Statisticiansmight not be able to observe the price of the old model in a given quarter because it has been discontinued, so instead must estimate the value of the improved features in the new model in order to make the old and new models comparable. Using the specific example of an Apple iPhone, the launch price of new models has tended to be similar to or higher than the launch price of previous models (Graph2).[6]If statisticians deem that consumers will place a positive value on the improved features in the new model, measured inflation will be lower than inflation observed from simply comparing launch prices. Indeed, the measured price of mobile phone handsets in the CPI has fallen by 18percent since mid2015. Note that statistical quality adjustments aim to capture the average quality derived across all consumers; in reality, some consumers will derive more value or use from particular features than other consumers.

https://www.rba.gov.au/publications/bulletin/2020/jun/pdf/quality-change-and-inflation-measurement.pdf