It is the most widely
used measure of inflation and can, at times, be seen as a key to how effectiveness of the government's economic policy.
Alternative measures of inflation that adjust for the more volatile components of the price basket, such as gasoline, were moderately higher than the headline number.
Whichever measure of inflation you choose, staff across the NHS will have seen a pretty eye - watering cut in their living standards for the best part of a decade.
Market -
based measures of inflation compensation remain low; survey ‑ based measures of longer - term inflation expectations have remained stable.
Another point to remember is that swings in commodity prices can affect the normal relationship between the total inflation rate and the
core measure of inflation that we use as an operational guide.
Post month - end trading continues to move yields lower as the Fed's
preferred measure of inflation unexpectedly slowed in April (Core PCE year - over-year, 1.2 % versus 1.3 % prior).
A supermarket food price war and lower petrol price inflation are expected to have brought the headline consumer price
index measure of inflation down for the sixth month running in March.
Bethesda, MD, January 12, 2012 — ProShares, the country's fourth most successful exchange traded fund (ETF) company, 1 today announced the launch of ProShares 30 Year TIPS / TSY Spread (NYSE: RINF) and ProShares Short 30 Year TIPS / TSY Spread (NYSE: FINF), the first ETFs designed to provide exposure to breakeven inflation, 2 a widely
followed measure of inflation expectations.
Inflation hasn't been a problem for a while now, but with both
key measures of inflation on the rise, now could be the time for investors to buy TIPS.
While a change on Monday restored a $ 3.2 billion middle - class provision allowing those enrolled in employer - sponsored dependent - care savings plans to deduct up to $ 5,000 from their taxes, a revision on Friday rolled back individual tax cuts by nearly $ 82 billion by indexing individual tax parameters to a
different measure of inflation that tends to grow more slowly.
Since all
published measures of inflation will be affected by the tax changes, the ABS proposes to calculate a «constant tax rate measure» for the September quarter CPI.
A few other things about inflation that are a bit odd are the importance of the goods and services that are included in the calculation basket (the UK's
CPI measure of inflation conspicuously omits housing costs for example).
Core inflation eliminates products that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a
false measure of inflation.
Although inflation compensation, which has returned as an
accurate measure of inflation expectations, plays a key role in the recent rise in longer - term rates, an earlier post illustrated that the primary reason for the longer decline in the 10 - Year Treasury note rate is the real, or inflation - adjusted, yield, as measured by the rate on 10 - Year Treasury Inflated Protected Securities.
The Consumer Prices Index including owner occupiers» housing costs (CPIH), the most
comprehensive measure of inflation, increased by 2.8 percent for the year to September from 2.7 percent in August, and annualized core inflation was flat at 2.7 percent during a similar period.
The report says that: «Taking these together with pressures on other costs, we forecast that school spending per pupil is likely to fall by around eight per cent in real terms [based on a school -
specific measure of inflation] between 2014 - 15 and 2019 - 20.»
«Taking these together with pressures on other costs, we forecast that school spending per pupil is likely to fall by around 8 % in real terms [based on a school - specific
measure of inflation] between 2014 - 15 and 2019 - 20,» the report says.
Real interest rates implied by the yields on indexed bonds, as well as the real lending rates derived using
various measures of inflation expectations, are also slightly below their long - term averages.
Statistics Canada says the Consumer Price Index (Canada's
primary measure of inflation) is running at an annualized 3.1 %, slightly above target but still in the comfort zone.
However, prices of services were only 1.0 percent higher, compared with a 1.5 percent increase in March Core
inflation measures of inflation, which the ECB also looks to as a guide, were also below expectations.
In this sense, these core
measures of inflation act as an operational guide to help the Bank achieve the total CPI inflation target.
As President Dudley said in his remarks, medium - term inflation expectations are of «particular importance» because «having
reliable measures of inflation expectations is crucial to assess the effectiveness of monetary policy and central bank communications.
The figure shows that in the first quarter of 2017, forecasters expected that 2018 CPI would be running at 2.3 percent, consistent with the Fed's 2 percent inflation target using the
PCE measure of inflation.