Economists surveying the Dow Jones are satisfied the rise in inflation rate didn’t exceed predictions, and expectations of how fast the CPI would increase. Based on the CPI gauge, the percentage increased by 7% last December 2021. It has been the fastest increase since June 1982, as the November gauge reflected only 0.4% increase in inflation rate.
What Exactly is CPI?
CPI stands for consumer price index, which is an inflation gauge as it considers the costs of so many items in its calculations. According to the Bureau of Labor Statistics, the percentage had increased by 0.5% every month .
The core CPI increased by 5.5% which excludes food and energy, and is deemed as the largest increment ever recorded since February 1991. The increase last year came even though there were shortages of workers and supply of goods. At the same time there’s the availability of stimulus funds infused into the economy by Congress and the Federal Reserve.
Costs related to shelters make up almost ⅓ of the total percentage, and it increased by 4.1% based on annual gauges, and at 0.4% on a monthly basis. On the other hand, https://youtu.be/ReRYI86Ovmsthe CPI of used vehicle prices increased by 3.5% in December. Actually, it is one of the main reasons the inflation increase during the pandemic. As it is, there is limited new vehicle production, as a result of supply chain limitations.
On the other hand, energy prices went down for the month by 0.4%, specifically gasoline prices dipped by 0.5%, while fuel oil dropped at by 2.4%.