Purpose of Assignment
This assignment will introduce students to the U.S.
Department of Labor’s Bureau of Labor Statistics (BLS) data and provide
students with the skills to calculate inflation and interpret the
Consumer Price Index (CPI). Note: The BLS is the primary source
of information on inflation, but their data is re-posted in other
sources, such as the St. Louis Federal Reserve FRED site, among others.
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Use an internet search or
the University Library to locate information on the Consumer Price Index
(CPI). Internet sites you might find useful include the Bureau of Labor
Statistics (BLS) and the Federal Reserve of St. Louis FRED web site
although you are allowed to use other sources.
Develop a minimum 700-word analysis of inflation by including the following:
- Choose a product or service you currently consume/use, such as
apparel or educational services, that is included in the CPI’s “market
basket.” Find the annual CPI index numbers for your chosen good or
service for the years 1995, 2005, 2010, and 2015. Enter those index
numbers in an Excel® file and calculate the percent change
(inflation rates) in those index numbers from 1995 to 2005, from 1995 to
2010, and from 1995 to 2015.
- Analyze the trends in overall inflation over the last five years and
whether your income has kept pace with inflation. How has inflation
over the last five years affected you and/or your family?
- Discuss how a business manager, such as a human resources manager, might use CPI statistics.
Cite a minimum of three scholarly, peer-reviewed references.
Format your paper consistent with APA guidelines.