January 29, 2009


Posted in CPI at 4:10 pm by davidprudente

There’s been a plethora of news about the economy over the past week — all of it bad. The Buruea of Labor Statistcs released its latest report for CPI on January 16th. The report indicated CPI for urban consumers has fallen: “On a seasonally adjusted basis, the CPI-U decreased 0.7 percent in December after declining 1.7 percent in November.”

Now, you might think lower prices would be a good thing for consumers (and it may be). However, can you explain why it points to trouble for the overall economy?

For fun, you can check out this CPI calculator from the BLS web site.

Click here to read more about the BLS and CPI.

Click here for an article about CPI from Bloomberg.com

And of course…Read Chapter 23 – Measuring The Cost of Living

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