Question

What is the most recent CPI information? How should we interpret it?

Answer 1

CPI is the consumer price index. It is used to measure urban inflation (urban household). The latest data on CPI indicates that CPI-U has shown an increase of 0.5 percent in January on a seasonally adjusted basis, the U.S. Measured from past 12 months, the index suggests that the all items index rose 2.1 percent before making any seasonal adjustment.

There are specific pieces of information as well. The energy index has increased by 3.0 percent in January. The food index has shown an increase of 0.2 percent. The index for items that does not include food and energy has increased 0.3 percent in January.

These values indicate that the consumer's cost of basket in urban areas have increased by 2.1% in comparison to last year's prices. Data also shows that for most of the items, the inflation has increased from December's values also and so cost of living in urban areas has risen.