Question

In its statement dated June 14, 2017, the Federal Open Market Committee indicated that inflation “is running somewhat below 2%.” Go to http://research.stlouisfed .org/fred2/, and click on the Series ID link “CPIAUCSL” (Consumer Price Index for All Urban Consumers: All Items-SA). Then click on the link “Percent Change from Year Ago.” What has happened to the inflation rate since the time of the last reported value in Figure 16?

Short answer

Change in rate was $2.8\%$in December, 2009. rate of inflation grew over time and also the change in rate of inflation recently was $2.4\%$in April,$2018$ .

Step-by-step solution

Concept Introduction

The speed at which general indicator of products and services rise which ends up within the decrease within the purchasing power of the economy is understood as rate.

Explanation of Solution

Various scenarios that cause inflation might be increased wages, confidence of consumer, low per centum. Consumers spend more on getting stable wages and when unemployment rate is additionally low. This increased expenditure increases the worth of products and services which causes inflation within the economy. Decline within the supply might be the opposite reason for inflation like the rise in demand for a commodity the provision of the commodity decreases. With the decreased availability consumers are willing to pay more which causes increased inflations.