Do you know the current inflation rate?

According to the US government

the most recent inflation rate analytics estimate 1.73% as the current rate of inflation, based on 12 months of economic study through the conclusion of the third quarter of 2016, the month of November. The stated inflation rate was published on December 15, 2016, and the government will provide an updated inflation rate by the end of the third week of January 2017, in order to provide an approximation of the most recent inflation rate.

What effects do CPI changes have on your income and daily life?

The Consumer Price Index gives an analysis showing the changes in consumer purchase behavioral pattern as well as the economic status which is often affected by the income of the buyers. A change in the CPI is often an indication of the true consumer preference on commodity prices. If there is an increment in the CPI then consumers will show a generalized a weighted –CPI purchase behavior, where buyers do conscious purchase decisions often to save some few extra dollars to the buying prices as a means of saving (Boskin, M. J., Dulberger, E. R., Gordon, R. J., Griliches, Z., & Jorgenson, D. W.,1998).

This is often due to a price hike

these type of buying is portrayed in chain-weighted –CPI making the consumer have a preference in buying certain commodities over others mainly due to price difference. This type of consumer purchase behavior is not reflected in the core CPI analytics. It is vital to know the CPI of any given business environment or even economy. Income and cash flow are highly affected by the CPI which often affects pension schemes, access to medical care, insurance coverage affecting most individuals personally as all these are largely dependent on the individual's income which is subjected to changes in CPI (Bryan, M. F., & Cecchetti, S. G. ,1993).

Conclusions

The indicators of market pricing, profits as well as consumer purchasing trends are largely based upon CPI analytics. Monetary policies that affect marketing by the respective governments will either aid the consumers on fair commodity pricing or will make the consumers seek alternative commodities to buy since the pricing will often be a factor that drives business to have increased sales or reduced sales. It is thereby imperative to understand CPI and its effects.

References

Boskin, M. J., Dulberger, E. R., Gordon, R. J., Griliches, Z., & Jorgenson, D. W. (1998).

Consumer prices, the consumer price index, and the cost of living. The Journal of Economic Perspectives, 12(1), 3-26.

Bryan, M. F., & Cecchetti, S. G. (1993). The consumer price index as a measure of inflation (No.

w4505). National Bureau of Economic Research.