Yet gasoline is noticeably more volatile. Within the CPI basket, the two are weighted in the same ballpark: apparel is about 2.5 percent while gasoline is roughly 3.4 percent. For the overall CPI without energy, the standard deviation was 0.1 percentage point over this period.Īnother way to view this volatility is to compare the contribution to the monthly CPI of two of the index’s components: gasoline and apparel. The standard deviation of monthly changes in gasoline prices was 5.7 percentage points from 2000 to 2019. The first point to note about the gasoline price is that it is highly volatile. In this blog, we take a brief look at the role of the gasoline price in inflation and how it relates to the pressing question of whether inflationary pressures are reliably easing. ![]() This price went up 10.6 percent over the month, and gasoline contributed 34 basis points of the overall monthly CPI, or a bit more than half of the 0.6 percent rate (over the past year, the gasoline price is down 3.3 percent). Both of these rates were a step up from recent inflation reports, and the main factor behind the jump was the August increase in the price of retail gasoline. Headline Consumer Price Index (CPI) inflation was 0.6 percent in August and 3.7 percent over the past year.
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