Consumer Price Index
Even though this is written from a UK perspective, it holds true for the rest of the world, too. ~ editor Annuity Income and Inflation Inflation as defined by Wikipedia is “an average index used to measure the rise in the general level of prices of goods and services in an economy over a period [...]
I recently received the following from Ed Devol, “When I try to educate people about the impact of inflation, I find putting it in terms of time worked for something is a good way of explaining inflation”. Thanks, Ed. I agree, when I am deciding whether to purchase something, I like to think of it [...]
Question: I have heard over the years that the CPI does not include taxes as one of its components. In other words, an increase or decrease in a tax rate is not considered a change in consumer prices/costs. Is this true? If so, how is this omission justified? Thank you, James Schmidt
Many people are confused by the difference between Inflation and the Consumer Price Index. The Consumer Price Index is as its name implies an index, or “a number used to measure change”. The Consumer Price Index (CPI-U) The government chose an arbitrary date to be the base year and set that equal to 100. Currently [...]
The Bureau of Labor Statistics (BLS) made changes of historical proportions this month by changing how the Consumer Price Index is reported. For the first time in history the BLS has begun reporting the Consumer Price Index to three decimal points. Their official statement is as follows: “Effective with this release, index levels are now [...]
