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The primary measure of inflation in the United States is the Consumer Price Index (CPI).
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The CPI is calculated by the Bureau of Labor Statistics (BLS). It tracks the average change in prices paid by consumers for a basket of goods and services over time. This basket includes items like food, housing, transportation, medical care, and more.
1. Consumer Price Index Frequently Asked Questions - Bureau of Labor Statistics
2. How does the government measure inflation? - Brookings Institution
There are two main CPI measures:
CPI-U: Measures price changes for urban consumers, representing about 93% of the U.S. population.
CPI-W: Measures price changes for urban wage earners and clerical workers.
Note: While the CPI is the most widely used measure, there are other indicators that can provide insights into inflation, such as the Personal Consumption Expenditure (PCE) Price Index and the Producer Price Index (PPI).
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