Inflation and Analyses of Monetary Policies Analysis

User Generated

Nmcra30

Economics

Description

This assignment will introduce students to the U.S. Department of Labor's Bureau of Labor Statistics (BLS) data and provide students with the skills to calculate inflation and interpret the Consumer Price Index (CPI). Note: The BLS is the primary source of information on inflation, but their data is re-posted in other sources, such as the St. Louis Federal Reserve FRED site, among others.

Assignment Steps

Use an internet search or the University Library to locate information on the Consumer Price Index (CPI). Internet sites you might find useful include the Bureau of Labor Statistics (BLS) and the Federal Reserve of St. Louis FRED web site although you are allowed to use other sources.

Develop a minimum 700-word analysis of inflation by including the following:

  • Choose a product or service you currently consume/use, such as apparel or educational services, that is included in the CPI's "market basket." Find the annual CPI index numbers for your chosen good or service for the years 1995, 2005, 2010, and 2015. Enter those index numbers in an Excel® file and calculate the percent change (inflation rates) in those index numbers from 1995 to 2005, from 1995 to 2010, and from 1995 to 2015.
  • Analyze the trends in overall inflation over the last five years and whether your income has kept pace with inflation. How has inflation over the last five years affected you and/or your family?
  • Discuss how a business manager, such as a human resources manager, might use CPI statistics.

Cite a minimum of three scholarly, peer-reviewed references.

Format your paper consistent with APA guidelines.

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Explanation & Answer

Attached.

Inflation and Analyses of Monetary Policies – Outline
I.
II.
III.

Product CPI Index
Trends in Overall Inflation over the Last Five Years
How a Business Manager might use CPI Statistics


Running head: INFLATION AND ANALYSES OF MONETARY POLICIES

Inflation and Analyses of Monetary Policies
Name
Institution

1

INFLATION AND ANALYSES OF MONETARY POLICIES

2

Inflation and Analyses of Monetary Policies
Product CPI Index
The item chosen for examination from the 'market basket' of the Consumer Price
Index is a sub-category of the food classification referred to as ‘food at home.' It includes;
sugars, poultry products, pastries, grains, meats, common items, vegetable beverages, and
treats. This item was chosen because of its congruity, sensibility, and relativity in reviewing
its impact regarding our evaluated typical monthly and yearly consumption in the home.

Food at Home
Annual Average
Percentage
Change

Base
Year
1995
152.4

2005
195.3

2010
218.06

2015
237.02

0%

28%

43%

56%

Subsequent years

The item’s yearly average in nineteen ninety-five was 152.4, rising to 195.30 in two
thousand and five, then ...


Anonymous
Just what I was looking for! Super helpful.

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