Inflation: Keep an Eye on the Consumer Budget

Recession May Be Knocking at our Door

In the United States, the Federal Reserve Bank measures the inflation rate with the consumer price index (CPI), compiled by the Bureau of Labor Statistics. The CPI tracks 200 spending categories, classified into eight groups: food and beverages, housing, apparel, transportation, medical care, recreation, education, communication, and other goods and services. Each type closely aligns with household spending, credit cards, and the ability to repay.

This viewpoint looks at where inflation comes from,  how it affects consumers, and what to expect as inflation continues.