The most widely reported measurement of inflation is the Consumer Price Index (CPI). The Consumer Price Index (CPI) is a measure of the overall cost of the goods and services bought by a typical consumer. The CPI measures the cost of a fixed basket of goods and services relative to the cost of that same basket of goods in a base year. The CPI is used to monitor changes in the cost of living over time. When the CPI rises, the typical family has to spend more dollars to maintain the same standard of living.
Today (October 17) the Bureau of Labor Statistics released the CPI Report for September. U.S. consumer prices rose 0.3% in September, which was the fastest rate in four months. Consumer prices were up 2.8% from a year ago. Sure seems like inflation is rising higher than that to me! Both the Wall Street Journal and the New York Times have good articles today about the September CPI News Release.
You learn more about the Consumer Price Index when we cover Chapter 7 of your e-book.
Late Start Econ 2 Extra credit: What do economists mean by “core inflation”? Why is it important? The answer may not be in your text. If you are the first student to send me an e-mail at(kwoodward@saddleback.edu) with the answer, you will be rewarded with two extra credit Discussion Board points. Only two points extra credit per student can be earned in any given week from the blog questions.
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