The Consumer Price Index, a Commerce
Department inflation measure, came in higher than expected in January, and the stock market has been volatile; how the Fed will react is unclear.
Not exact matches
The rise in the annual
inflation measures reported by the Commerce
Department on Monday was anticipated by economists and Fed officials and is not expected to alter the U.S. central bank's gradual pace of interest rate increases.
Various
inflation measures compiled by the Labor
Department certainly make compelling reading.
On Monday, the Commerce
Department said the
inflation measure fell to 1.7 % annually in December, down from 1.9 % the previous month.
The Fed's preferred
measure of
inflation soared 1.9 percent in the 12 months through March, the biggest increase since February 2017, after increasing 1.6 percent in the year through February, the U.S. Commerce
Department reported.
To be consistent with the practice of other Federal agencies and the
Department itself, we have determined that the CPI - U is the most appropriate
inflation measure to use to adjust the threshold debt amount.
Most of the commenters that responded to this solicitation agreed that the
Department should index the $ 2,085 to an
inflation measure, and that the CPI - U produced by the Bureau of Labor Statistics would be the most appropriate
measure.
In the NPRM, the
Department solicited comments on the appropriate
inflation measure to use to index the $ 2,085 threshold debt amount.
However, this commenter recommended that if the
Department decides to adjust the threshold amount any future changes should be based on CPI, as a recognized
measure of
inflation.
TIPS are securities issued by the
Department of Treasury whose principal increases with
inflation and decrease with deflation, as
measured by the Consumer Price Index.