How the Consumer-Price Index Measures Inflation | WSJ

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As inflation climbs in the U.S., rising food and energy costs have pushed the nation’s most popular price index to its highest level in four decades. WSJ’s Gwynn Guilford explains how the consumer-price index works and what it can tell you about inflation.

Illustration: Jacob Reynolds

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28 COMMENTS

  1. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. <It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

  2. I find myself at a crossroads, uncertain whether to liquidate my $150,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.

  3. So if the interest rate goes up, mortgage goes up, and landlords payement goes up, they increase rent, it increases inflation, and the rate goes up again. What if the real estate is controlled by big coops who needs to pay back banks.

  4. Problem is we the public, have to deal with rampant change not related to the consumer behavior or expectations. Your report proves that. So the CPI is no longer of value?

    Nothing has gotten better, the majority of people are desparately trying to eat, flee states, and manage work day to day. Not monthly .

    This report states and tries to prove the time of change is in days not month to month as the CPI is no longer valid.

  5. You did not explain whether the monthly reported CPI number is percentage change over the previous month, or over the same month one year ago. So for example, if the November CPI is 7%, does that mean the basket of goods is 7% more expensive than October? Or does it mean that the basket of goods is 7% more than a cost last November?

  6. Corporations CEO’s need to humble their profit margins just like WallStreet fund managers.Also companies need to stop penny pinching with workers annual & quarterly raises!!!!

  7. So there is inflation because of greedy workers who instead of thinking about the broader picture, they selfishly demand a raise? Why don't they conform and accept that they are directly hurting others if they demand a raise? Don't they see that they're embedding more and more the inflation into the economy? That is why there is no progress, greed is too much present in everyday workers who should be disinterested and cooperate to reach future real happiness.

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