Question of the Day: Inflation recently hit a 39 year high. How much have prices risen in the past year, as measured by the Consumer Price Index (CPI)?
Answer:
Questions:
- Have you noticed inflation (the increases in prices) in items that you or your family purchase in your own lives? Examples?
- What impact does inflation have on family budgets?
- How much do you think that prices have to go up before it impacts consumer behavior and their purchase decisions?
- What do you think are the causes behind this spike in inflation?
Have your class predict the CPI for the 12 months ending January 2022 and the class could earn a $100 gift card. Details on the contest which ends on 2/10 at 8:30am ET.
Behind the numbers (CNBC):
"Inflation plowed ahead at its fastest 12-month pace in nearly 40 years during December, according to a closely watched gauge the Labor Department released Wednesday. The consumer price index, a metric that measures costs across dozens of items, increased 7%, according to the department’s Bureau of Labor Statistics. On a monthly basis, CPI rose 0.5%...
The annual move was the fastest increase since June 1982 and comes amid a shortage of goods and workers and on the heels of unprecedented cash flowing through the U.S. economy from Congress and the Federal Reserve."
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Learn more about inflation by completing an NGPF On-Demand on Inflation: Will It Stay or Will It Go?
About the Author
Tim Ranzetta
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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