Assignment:
Go to the Bureau of Labor Statistics (BLS) website for Consumer Price Index (CPI) data at https://www.bls.gov/cpi. On the left side of the page click on "CPI tables". Click on the most recent "Consumer Price Index Detailed Report, complete text and tables" in the middle of the page (the most recent report should be the top link).
Create a chart showing the seasonally adjusted percentage change in CPI all items, CPI less food and energy, and three components of your choice (example: electricity, apparel, and shelter) for each month of the past year. You will have to use additional older CPI tables in order to collect the required data. (note: the numbers may vary slightly. For example, if you look at the May table, the April number may be 0.4. If you look at the June table, the April number may have been revised to 0.3. You can choose to use either of these numbers, as we're looking at overall movement rather than minute details). Your chart should have the five components you are analyzing across the top row with the statistics reported in each corresponding column.
Please write a two page, double-spaced essay analyzing the data. Be sure to answer the following questions: What has been the general trend in CPI movement over the past year? What about the past three months? Based on this information, is the country experiencing inflation or deflation? What is the trend in CPI excluding food and energy? What does this information tell you about how food and energy prices are currently affecting CPI and overall inflation/deflation?
What has been the trend in the movement of the three components you have chosen to analyze? Does this information match your overall view of the economy? Have you noticed similar price increases/decreases in your day-to-day life?