May CPI numbers released by the BLS came broadly in line with expectations, with headline inflation posting an increase of 0.4% versus expectations of 0.5%. The core measure, excluding food and energy, rose 0.1% versus consensus estimates of 0.2%. Rebounding gasoline...
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April CPI: Higher than expected Core CPI unlikely to trigger Fed. Medical Costs Surge
CPI for April came in broadly inline with market expectations with core inflation (ex Food and Energy) rising +0.3% MoM vs expectations of +0.2%. Broader CPI rose +0.1% bang inline with market forecasts. Annualized figures show a persistent deflationary trend,...
What is the Velocity of Money?
Financial commentary and analysis is usually heavily peppered with “since Lehman” or “Post-Lehman” comparison statistics and conjecture. 2008 were some of the darkest days ever for financial markets; the losses worldwide were truly staggering and we are still...
March inflation data: CPI Ex Food and Energy starting to heat up
Official March inflation data from the BLS was a mixed bag with headline CPI continuing to remain under pressure, but a significant rise in Core CPI ex Food and Energy was enough to trigger knee jerk uncertainty about the outlook for the Fed’s immediate interest rate...
February CPI Tops Expectations, Slowly Gears Fed Timetable Forward
The U.S. economy got a little economic boost today with a stronger-than-expected CPI reading for February, and a strong Purchasing Manager's Index (PMI) that continued to project GDP growth. Headline CPI and core CPI both came in 0.2% higher than January, as slight...
Different ways of measuring inflation in the U.S.
Inflation is one of the most important economic indicators available to consumers and investors as it gives a strong signal how the economy is currently performing, and perhaps more importantly, a strong hint at which way monetary policy is likely to swing in the...
What exactly is the Consumer Price Index (CPI) and how is it calculated?
CPI stands for Consumer Price Index, and it is a measure of inflation. It is calculated by measuring the change in a specific group of goods and services over time. The CPI is calculated by the US Bureau of Labor Statistics. What the CPI Measures The CPI measures the...
How Does CPI Affect Inflation?
CPI data is used to calculate inflation with the following general formula: CPI1 = initial CPI CPI2 = final CPI Inflation = (CPI2-CPI1)/CPI1 Since two CPI values define inflation, the consumer price index has a large effect on reported inflation. CPI and Inflation...