The Expectations Index comprises exactly 60 percent of the overall Consumer Confidence Index; the CCI is an average of responses to five survey questions, three of which deal with expectations over the next six months. The average of those three items makes up the Expectations Index. Participants ...
Inflationcan also be thought of as the devaluation of money. It can be a concern because it makes money saved in the present less valuable in the future. Inflation erodes both purchasing power and the value of investments. For example, if an investor earned 5% from investments in stocks and...
Section A Directions: In this section, you will hear three news reports. At the end of each news report, you will hear two or three questions. Both the news report and the questions will be spoken only once. After you hear a question, you must choose the best answer from the four cho...
Demand-pull inflation Demand-pull inflation occurs when the economy demands more goods and services than are available. If demand skyrockets but supply, or the overall amount of goods and services, remains the same, the demand pulls up the prices for things. Imagine you own a bagel shop in...
Current Annual Inflation Chart To read the BLS Commissioner reportand See the current component breakdown (Table A) go to:annual-inflation/ Also see:Current Consumer Price Index (CPI-U) Current Inflation Table You may also be interested in a table ofMonthly Inflation Rate data, which shows how...
If sellers don't raise the price, they will sell out and eventually come to realize they now have the luxury of hiking up prices. If enough sellers do this, they create inflation. There are several circumstances that create demand-pull inflation. For example, agrowing economyaffects inflation...
What is lifestyle inflation and where does it come from? Lifestyle creep happens when your spending on non-essentials increases, which can sometimes be dangerous to your financial health. Having room in your budget makes you want to fill it — with a pricier living space, a newer car, more...
Inflation hedge: commodities Numerous research papers point out thatcommoditiessometimesdeliver exceptional returns in the teeth of inflationary pressure. It certainly makes sense that commodities should serve as some kind of inflation hedge, given that the cost of raw materials is often one of the boo...
Making regular contributions (monthly, for example) to large index funds often makes up the backbone of a long-term investment strategy. We should note, however, that exchange-traded funds (ETFs) achieve the same result, and typically have lower investment minimums. To buy shares of index fu...
Inflation is the rate at which prices for goods and services rise. Inflation is sometimes classified into three types: demand-pull inflation, cost-push inflation, and built-in inflation. The most commonly used inflation indexes are the Consumer Price Index and the Wholesale Price Index. ...