Question

What is the current U.S. inflation rate? Visit the Bureau of Labor Statistics Web Site: Click HERE ㅢ go to the BLS web site. On the righthẩd side under "Latest Numbers" select "Consumer Price Index." Then under Table of Contents select "Consumer Price Index Summary." Now answer the following questions:

1. What month (and year) is summarized?
2. What was the unadjusted CPI−U index number for "All Items" for the most current month? (Look in Table 1 by scrolling down towards the bottom.)?
3. What was the rate of inflation (All Items. Unadjusted percentage change ) over the most recent year? That is the change from the previou. year, most current month. (Look in Summary or Table 1.)
4. Which two categories of goods or services had the greatest price increases for the month? Use the seasonally adjusted percentage change CPI−U
5. Which two had the largest price decrease for the month? Seasonally adjusted percentage change CPI-U

Answer 1

The Consumer Price Index (CPI) is the primary measure for U.S. inflation, reflecting the cost of living by tracking the prices of goods and services for the typical household. Other price indices like PPI and GDP deflator serve different economic measurements. Historical CPI data shows inflation rates can vary significantly and are essential for financial planning.

Step-by-step explanation:

The most commonly cited measure of inflation in the United States is the Consumer Price Index (CPI). The CPI is a key economic indicator that the U.S. Bureau of Labor Statistics (BLS) compiles to track changes in the price level of a basket of goods and services that typical American households purchase. Although there are several price indices, CPI is often used as a measure to calculate the U.S. inflation rates and represent the cost of living for the average consumer. To avoid biases in CPI, the BLS regularly updates the composition of the basket, adjusts for changes in quality, and ensures that the index reflects current spending patterns. Other relevant indices include the Producer Price Index (PPI), International Price Index, Employment Cost Index, and the GDP deflator, each serving different aspects of price movements in the economy.

Looking at historical data, inflation has fluctuated considerably over time. While the CPI has risen typically within the range of 2% to 4% per year in recent decades, there have been periods of much higher inflation rates. Understanding the impact of inflation is crucial for making informed financial decisions, as the price of goods and services can increase significantly over time.