Bets on a pickup in inflation are falling out of favor, underscoring investors’ skepticism that the U.S. economy will be able to stage a rebound after a soft start to the year.
Measuring inflation. How do you measure the effect of inflation on your savings? The government measures it for you and publishes the results regularly
The Consumer Price Index (CPI) tracks the prices of a variety of consumer goods and services, including transportation, medical care, and housing. The index is published monthly.
During the worst of the crisis, the Federal Reserve targeted a 2% annual growth in inflation to return the economy to health. The bank initiated various stimulus measures that were intended to boost the economy and encourage job creation.
There are many methods used to control inflation; some work well while others may have damaging effects. For example, controlling inflation through wage and price controls can cause a recession and cause job losses.