Indexation and Inflation
Release of the Consumer Price Index (CPI) by
the Bureau of Labor Statistics (BLS) usually
makes front page news. Newspaper reports
often include commentaries by public officials,
business executives, labor leaders, and
economists. Significant changes in the index
sometimes seem to influence trading in common
stocks and foreign exchange. The attention
given these reports is well deserved. The
CPI provides the best monthly information
available on the trend of price inflation, viewed
by most Americans as the nation's
foremost problem.
