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What Is CPI?
By JD Bluefield | May 14, 2008
What Is CPI? Per Wikipedia, A consumer price index (CPI) is an index number measuring the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies.
According to CNNMoney, the Government CPI said inflation over the last year is at 4%, yet there are many items that have risen astronomically.
- Flour: Up 14%
- Rice and Pasta: Up 13%
- Milk: Up 13%
- Fuel oil: Up 48%
- Natural Gas: Up 5%
- Gasoline: Up 20.9%
Why aren’t these high costs reflected in the CPI? Well, each food item above accounts for less than 0.3% of the CPI, flour being the least at 0.4%. All the food you bring home, only accounts for less than 8% of the total CPI. If you live in an area that requires home heating, then you’ve probably felt the pinch of Fuel oil. Of course, most everyone is feeling gasoline.
So ask your self thise silly question, “Has your household spending gone up only 4%?” I don’t think so.
Topics: Personal Finance |
2 Responses to “What Is CPI?”
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May 14th, 2008 at 10:17 am
I’m surprised that health foods haven’t risen…I mean with everyone going on these diets and what not, you would think so.
Maybe if people stopped buying so much pasta/rice, the US wouldn’t have as much of a problem w/ obesity
May 20th, 2008 at 2:02 pm
People will jump off of organics, healthy and trendy food as soon as money is tight. In times like these, Whole Food, Starbucks and Down-to-Earth are going to get destroyed.
Most Americans can stand to eat a little less.