No. of Recommendations: 2
Consumer price inflation has impacts that vary:
1. The CPI-U is used to calculate the yield of TIPS and I-Series Savings Bonds. This is a direct impact on bond investments that MCT inflation doesn't have.
2. Each household has a different mix of goods and services. For example, inflation in rentals doesn't affect me at all since I own my home outright. Rental price inflation has a dramatic impact on renters. All the broad inflation indexes have this weakness. One's personal inflation rate will be different from the index. The actual household purchasing power of the USD will vary.
3. The Federal Reserve scrutinizes the PCE Index (their favorite) as well as the CPI. They may study the MCT but not enough to publish continually updated charts about it.
St. Louis Fed (FRED): Inflation, consumer prices for the United States (FPCPITOTLZGUSA) | FREDatlantafed.org - Underlying inflation dashboardclevelandfed.org - Inflation nowcastingIt's too early to see a distinct trend but the Cleveland Fed's Inflation Nowcasting is showing a gradually rising inflation trend.
Wendy
