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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