We
are hyper concerned with long term inflation and its degrading effect on the
value of money in the future. I have often been asked where does this CPI
increase come from. Well, this audio documentary does a good job of uncovering
the method by which the CPI is calculated.
Planet Money Episode #222: The Price of Lettuce in Brooklyn
Released Jan 07, 2015
Originally
released in October 2010 in this episode of Planet Money, the investigator
goes shopping with George Minichiello. George is one of hundreds of
federal employees who goes to stores all over the country and record the prices
of thousands of different things. A bag of romaine lettuce. A boy's size-14
collared shirt made of 97 percent cotton. A loaf of white bread. Their
work drives the consumer price index, a key economic indicator known to its
friends as CPI. The index measures inflation in the U.S., and it
influences everything from Social Security checks to the price of school
lunches to how big your raise will be next year.
With
this in your brain I would recommend the following as a next chapter on
spending and inflation thinking:
No comments:
Post a Comment