Complete the following exercise Visit the Bureau of Labor St

Complete the following exercise:

Visit the Bureau of Labor Statistics Web Site,

www.bls.gov/news.release/cpi.toc.htm . Select Consumer Price Index Summary.

Write a report (1-2 pages double - spaced) to answer the questions:

What month (and year) is summarized? What was CPI-U for that month?

What was the rate of inflation (percentage change in the CPI-U) for the month? How does that rate of inflation compare with the rate in the previous month?

Which two categories of goods or services had the greatest price increase for the month?

Which two categories of goods or services had the lowest price increase (or greatest price decrease) for the month?

Who loses from inflation?

Solution

What month (and year) is summarized? What was CPI-U for that month?

Ans: September 2015 is summarized

What was the rate of inflation (percentage change in the CPI-U) for the month? How does that rate of inflation compare with the rate in the previous month?

Ans :

Which two categories of goods or services had the greatest price increase for the month?

Ans :

Looking at the seasonally adjusted data, Food had a total price increase of 0.4 and the sub-category of Food away from home had a price increase of 0.5

Which two categories of goods or services had the lowest price increase (or greatest price decrease) for the month?

Greatest price decrease was seen in the gasoline sub-category and the energy commodities sub-category