Thursday, March 1, 2012

RS 9: CPI


        
    This podcast about consumer price index was insightful in explaining how they get this number but I still don’t have a thorough understanding on exactly what this number means. As explained in the podcast, the CPI is an important number released monthly, telling us if the price in the US has gone up or down (facing inflation or deflation). With that being said, that was basically the only explanation of CPI.
         
   The podcast then discussed how the government figured out the monthly CPI. Interestingly enough, 450 economic assistants for the Bureau of labor statistics physically go to stores throughout the US and price different things. These items are chosen based on typical purchases of the typical household in America.  This strategy of having hundreds of assistants going out monthly to different stores seems a little tedious and I feel like there needs to be an easier way. Apparently, there isn’t and they find this necessary. Overall, I found this podcast interesting but not totally comprehensive. 

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