The United States is one of the biggest economies in the world and the country’s inflation rate is always followed by financial analysts.
The inflation rate of a country determines the health of its economy and it is not good for the consumers when the inflation rate is extremely high. The inflation rate is calculated through the use of Consumer Price Index or CPI.
For the 2017 CPI and Inflation Rate of for the United States, it was found out that the consumer price inflation rose to 2.2 percent in November 2017. In October, the rate was only at 2 percent.
More on the increase of cost for gasoline, the price increased from 10.8 percent in October to 16.5 percent in November. Fuel oil, electricity, utility piped gas, food, and medical care necessaries have also increased during November 2017. Due to this, energy prices have increased at a faster time while the costs for apparel and vehicle have decreased during the same months. Also, costs for the basics such as shelter, transportation, and medical services slightly decreased.
Earlier last year, specifically for the months of September and August, the cost for gasoline and fuel oil have decreased because of hurricane-related production disturbances and interruptions. However, because of the decrease in gasoline and fuel oil, there was an increase in the energy prices for the same months. A 1.8 core inflation was recorded during this month, which was the highest since January 2017. The core inflation increased despite the rising prices for the basic necessities such as food, medical care, and transportation.
Also on September 2017, the United States’ inflation rate rose to 2.2 percent. This was also the highest in five months since the start of 2017. The market expectation was 2.3 percent. Consumer prices also increased by 1.9 percent in August 2017. The market expectation for this month was 1.8. Hurricane Harvey was the compelling force that led to the increase in consumer prices.
The Consumer Price Index for All Urban Consumers in the United States is based on factors such as food, which makes up 14 percent of the total basis, energy, which is at 9.3 percent, commodities except food and energy, which is 19.4 percent, and services except energy services at 57.3 percent. The shelter, medical care services, and transportation services make up 43.4 percent all in all.
Per the forecast of Federal Open Market Committee, the inflation rate of the United States for 2017 will be an average of 1.6 percent. It is expected to increase by to 1.9 percent by 2018 and will probably be stable at 2 percent from 2019 through 2020.
The inflation rate of a country solely depends on the balance between the supply and demand within a country’s economy. The result from the supply and demand is then based on the labor market. When the workforce falls, it means that the wages and the inflation rate will increase.
In general, not including food and energy costs, considering all the factors related to the 2017 CPI and Inflation Rate of for the United States, the consumer prices went up by 0.1 percent on November 2017. For all the consumer prices, it rose to 1.7 percent.