Consumer Good Are on the Rise

1748 WordsJan 26, 20187 Pages
Consumer goods are on the rise and CPI going up 0.2% in March 2014. What is causing this rise? According to the Bureau of Labor Statistics, “Increase in the shelter and foods cost accounted for most of the rise.” (CNNMoney) Everything from beef, milk, vegetables, medical care, clothing, and airline fares are increased. Joel Naroff, president and chief economist, said “Today’s report shows that prices seem well contained, unless, of course you had to go out and buy food or heat your house.” (CNNMoney) Today I will discuss how consumer price index, inflation is affecting our economy. What is inflation? “Inflation is a increase in price levels over the progression of time.” (Correcting the Effects) In the article, inflation is occurring with the rise of price levels in consumer goods. “When inflation is experienced, the purchasing power of a fixed sum of money decreases. Over long time periods, this decrease in value become significant.” (Correcting the Effects) For example, beef prices the highest it has ever been since 1987 around $5.28 a lb. Coffee also on a 25 month high, dairy products soaring high and half a gallon of milk with a .50$ increase. Forecast says, “ It is going remain high for the next several years”. (CNNMoney) The government officially said “Food inflation will likely rise 2.5 – 3.5 % this year. That is a huge increase compare to previous years. Luckily, the one area we are not feeling the pain is at the gas pump. Gas is extremely important in our everyday
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