Ep.93 - Behind the Numbers: The Federal Reserve, CPI, and Your Wallet
Are you wondering why your wallet hurts a bit more than it used to pre-Covid? Today, we take an in-depth look at the Consumer Price Index (CPI) released by the Federal Reserve that morning. It’s time to understand inflation deeper as we break down the three types of indexes - CPI, PCE, and PPI - and look at what each measures. We cover the strategic oil reserve, which has been used to reduce gas prices in times of crisis. We also examine how August's inflationary readings have affected different categories, such as energy, food items, and alcohol. All this leads to our urgent situation: the Federal Reserve might raise interest rates despite the CPI reading not being a major index they look at.
If you want to know how inflation affects your daily life, tune in for this informative episode to get all the answers!
[00:01 - 05:09] Inflation is up slightly due to the energy sector’s core reading
[05:10 - 09:54] Inflationary prices are on the rise: Fuel, airlines, and books are seeing the biggest increases
[09:55 - 12:48] How the CPI reading shows shelter cost saved us
[12:49 - 20:38] Breaking down the CPI and why the Federal Reserve still threatens to cause pain
Quotes:
"The definition of inflation is the simplest, and its purest definition is going to be too much money chasing too few goods." - Quinton Harris
"Many of you online described that you thought that was greed by the companies taking advantage of this inflationary process that we're in." - Quinton Harris
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Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/.
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