Chapter 10. Consumer and Producer Price Inflation

In This Chapter

  • Inflation, deflation, and other cool price definitions

  • The Consumer Price Index report

  • The Producer Price Index report

  • How inflation affects the markets

No consumer likes higher prices. Paying more for an item really cuts into how far your paycheck goes, doesn’t it? But high prices don’t sneak up on you like a silent thief in the night, either. It’s hard to ignore high prices when they practically scream out at you from gas station road signs or from the aisles in your local grocery store.

Inflation is on all our minds these days. So it’s a great time to empower yourself with knowledge, right? There are two major reports on inflation: one at the consumer level and one at the producer ...

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