About three hours ago, the BLS (Bureau of Labor Statistics) released their November 2021 report on CPI (Consumer Price Index) one of the broadest measures of Inflation…
If you have noticed your grocery basket smaller and more expensive, this is why….
This report has a ton of factors in it, as can be seen at the top of the chart from the BLS report, below….
The year over year print was 6.8% increase!
A very large portion of the CPI is Energy…
Have you noticed a LOWER bill to fill your tank lately?
The BLS report is lagging, below is a current Oil price, which is over 10% LOWER currently… hence the cheaper refills…
Very likely peak in CPI as measured by the BLS, next month which will be released in early January, we will take a peak and keep you updated…
Ok, another slightly heavy Friday, BUT the FOMC is watching this very closely and making decisions based on this increase, which may be peaking/lagging already…. Let’s stay tuned!
Have a Great “Friday CPI Analysis” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
CPI – Consumer Price Index Survey Weights – C/O Another New Fantastic Research Service … Pew Research Organization
With a tremendous amount of attention being paid to the Bureau of Labor Statistics CPI Report (Consumer Price Index), we set off as part of our research to find an easy explanation of the breakdown of the index.
As a reminder the CPI index is a measure of inflation, hence the increase rhetoric not only in the public domain, but here as well, as we have spoken about it multiple times via analysis.
Back to the analysis, we found tons of information about the make up of the aforementioned CPI index, and a 100 plus items that make it up, but oddly it took us some time to find the true easy breakdown in larger macro elements of the CPI index.
Great news, a new approved non-copyright use from a fantastic new research service called Pew Research has been discovered. With approval from their public relations folks, we are happy to finally show you this wonderful graph that breaks the CPI index down into very easy and visually friendly context.
We will be referring back to this graph frequently, as some of our future commentary will be about this CPI index, and what it may look like in the future and what it means from a Federal Reserve/FOMC standpoint.
Have a Great “CPI Index Simplified” Day!
John A. Kvale CFA, CFP
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Posted in Economy, FOMC, Interest Rates, Investing/Financial Planning, Market Comments
Tagged BLS, Bureau Of Labor Statistics, Consumer Price Index, CPI, FOMC, Inflation, Interest Rates