Economic Indicators: CPI and Inflation

Learning Objectives

• To discuss simple index numbers.
• To discuss weighted price indices.
• To evaluate the mechanics of how the Consumer Price Index (CPI) is constructed in the U.S. and Canada.
• To analyze how to put price indices to work by learning how to use them to calculate the inflation rate.
• To assess how to adjust nominal data series into real series so they can be compared over time.
• To discuss the causes and consequences of inflation and hyperinflation.
• To analyze how and when the official figures are released to the public, their impact on markets, and then reinforce some of the concepts with a short active learning exercise.

Course Description

During uncertain times, it is critical to gain an understanding of what is most likely to happen to the economy. This is an essential part of the business planning process.

Economic indicators are those often-voluminous statistics released by government agencies, non-profit organizations, and even private companies.

They provide measurements for evaluating the health of our economy, including the latest business cycles, consumer spending, inflation, housing, and so on. Various economic indicators are released quarterly, monthly, weekly, and even daily.

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Attendees of the CPE course will learn about price indices and inflation.

Following major topics are discussed in this CPE webinar:

• What are the causes and consequences of inflation and hyperinflation?
• How and when the official figures of inflation and hyperinflation are released to the public?
• What are the impacts of inflation and hyperinflation on market?
• How to reinforce some of the concepts with a short active learning exercise?

Overview

• What is a price index?

  3 mins
• A naive price index

  15 mins
• Laspeyres price index

  24 mins
• U.S. consumer price index

  33 mins
• Other important price indexec

  46 mins
• Effects on inflation

  61 mins