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CPI

Inflation is falling, but consumers aren't celebrating yet

by Mitchell Hartman
Oct 10, 2024
The September CPI showed inflation slowing to 2.4% annually, but consumer sentiment hasn't yet rebounded to pre-pandemic levels.
People are still feeling down about the persistence of high prices.
Joe Raedle/Getty Images
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Some consumers are shifting to older models of used cars

by Stephanie Hughes
Sep 11, 2024
They may come at a lower price point, but there are downsides — like, it can be harder to get a loan to buy one.
Used cars are often more affordable than buying new. But it can be hard to get a loan for one over nine years old.
Scott Olson/Getty Images
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The federal government has two main measures of inflation. They don't agree.

by Nancy Marshall-Genzer
Sep 9, 2024
The CPI shows consistently higher inflation than the PCE because it emphasizes different prices. Their gap has been wider than usual.
One reason for the gap between CPI and PCE inflation numbers? The CPI asks consumers how they're spending their money, while the PCE measures all money spent by consumers and businesses.
Eric Thayer/Getty Images
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CPI could be Fed's last gut check before interest rate decision

by Kristin Schwab
Sep 9, 2024
The monthly inflation gauge, to be released Wednesday, could influence how much the central bank cuts rates next week.
The August consumer price index may be the last major piece of information the Federal Reserve receives before it meets to adjust interest rates. Above, Chair Jerome Powell.
Alex Wong/Getty Images
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The last time inflation was under 3% was March 2021

by Kristin Schwab
Aug 21, 2024
The economy — and life —has changed a lot since.
The world looked very different the last time inflation rates dipped under 3%.
Montinique Monroe/Getty Images
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Sticky shelter prices make Fed's 2% inflation target hard to reach

by Stephanie Hughes
Jul 11, 2024
Housing costs rose 5.2% in June from a year earlier, pulling up the consumer price index.
Housing is in a supply crunch, which is keeping costs high and inflation from dropping further. But that doesn't mean the Fed won't cut rates.
Spencer Platt/Getty Images
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How does the cost of housing figure into the consumer price index? It's complicated.

by Caleigh Wells
Jun 14, 2024
Owners' equivalent rent measures the market cost of living in a home — which is a bit different from how much we actually spend on housing.
The cost of housing makes up more than a third of the CPI.
Mario Tama/Getty Images
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Why is the Fed still so cautious about interest rates?

by Mitchell Hartman
Jun 13, 2024
Despite the CPI coming in unexpectedly low, the Federal Reserve needs more convincing that inflation is really getting better.
"Consumers change their buying habits, they move from steak to chicken, from the upper shelf down to the lower shelf," said Dan North with Allianz Trade about inflation.
Frederic J. Brown/AFP via Getty Images
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In April, grocery store prices were flat — or even lower

by Caleigh Wells
May 15, 2024
Consumers tend to be very sensitive to food costs. Fresh edibles like fruit, vegetables and meat saw substantial declines.
The prices of fresh food like fruit, vegetables and meat saw some of the biggest decreases.
Frederic J. Brown/AFP via Getty Images
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Why isn't the cost of borrowing money included in the consumer price index?

by Nancy Marshall-Genzer
May 15, 2024
Loans are a big cost, but they would muddle the data in the CPI. Fed rate hikes would essentially create inflation, despite their intention.
Borrowing is a major expense for many Americans. One example is the interest on car loans.
Justin Sullivan/Getty Images
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