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Measuring inflation

Measuring inflation

课程: Financial Basics Everyone Should Know

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Measuring inflation

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- [Instructor] Now measuring inflation seems simple at first, but it quickly gets complicated. So let's look at what that process is for measuring inflation and how it's done. I'm here at the BLS, or Bureau of Labor Statistics website, and specifically we're looking at what's called the consumer price index. Now, the consumer price index is the primary tool that we use, at least at the headline level, for managing and measuring inflation over time. There are alternative tools and alternative baskets as we call them, like as an example, the PCE or various CPI metrics that strip out different items, but you know, at least in a big picture, the CPI measures most of what we care about. Now, it's kind of nice to be able to go through and look at the Bureau's website because you can see what they're specifically doing to kind of measure inflation. And in particular, I've pulled up the most recent report or one of the most recent reports on inflation, and we see that as an example, they're…

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