Because a Covid-19 basket of goods and services has a different inflation rate from the CPI basket, the cost of living might not be what we think it is.
Although the BLS reports the CPI (Consumer Price Index) inflation rate each month, our own household could see different price changes.
By calculating Santa’s wages through comparable occupations, we can determine if his yearly earnings increases are similar to U.S. workers.
Like the CPI measures purchasing power through the dollar’s inflation rate, we can observe waistline changes through clothing size inflation.
To decide the strength of our economic recovery since the Great Recession, we can use seven numbers or just one that might be most important.
Usually Federal Reserve interest rate hikes should control inflation but now it is mysteriously missing, even with low unemployment.
This week’s economic news summary includes the diner’s dilemma and marginal analysis, property rights in outer space, the Phillip’s Curve and unemployment.
Showing the connection between inflation and unemployment, the Phillips Curve has been re-interpreted, re-affirmed and condemned as a monetary policy tool.
As the source of monetary policy, the Federal Reserve has to decide if interest rates should rise when inflation is low but a jobs recovery has begun.