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.