Surfboards & Golf Carts: Inflation’s Mixed Costs

NBC News Consumer Price Index AnimationHave you ever wondered how U.S. government economists determine inflation, i.e., whether or not costs in the United States are going up or down relative to salaries and the U.S. dollar?

Me, neither. But NBC News did.

They created this short and entertaining animation about the Consumer Price Index, or CPI. The writers at the Bureau of Labor Statistics define the CPI this way: “The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.”

NBCNews.com | December 16, 2013

Surfboards & golf-carts: Inflation’s mixed costs

Every month the government issues its measure of consumer inflation, and every month slews of Americans scratch their heads in puzzlement. For a better understanding of this important, but complicated, economic indicator, watch this animation, reported with CNBC’s Allison Linn.

Do you think you understand the CPI now?

Please let me know what you think....