Charts of the Week
Inflation
Chart of the Week for March 16, 2018 - March 22, 2018
The Consumer Price Index (CPI) is a closely watched economic indicator of inflation published monthly by the Bureau of Labor Statistics. It measures inflation by calculating the average change over time in the prices paid by urban consumers for a fixed market basket of consumer goods and services. The chart above shows the year-over-year change in CPI for the previous 12 months.
CPI increased by 2.2% year-over-year in February 2018, slightly below expectations and consistent with the results of the last few months. Inflation and employment are monitored by the Federal Reserve Board to drive decision making on the direction of interest rates. The Federal Open Market Committee is meeting next week with most economists and market participants expecting an increase in the target rate range of the Fed Funds Rate at that meeting, and possibly two additional increases during 2018. Some economists are noting that the pace of inflation as indicated by the February report may keep the Fed from raising rates more frequently.
Posted by: sarah_oz@yahoo.com
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