CPI

Inflation in the U.S. might be easing, but that doesn't mean it's good.

With the consumer price index running at 3.8% — and expected to rise further when new data drops Wednesday — purchasing power is eroding.

Two inflation reports drop this week, but neither captures the full picture of what's happening to prices in real time. The gap comes down to a trade-off economists know well: speed versus comprehensiveness.

Overall inflation was up 0.3% from November to December.

The Bureau of Labor Statistics usually collects data in real time. So it may not be able to capture October prices or jobs data that was missed during the shutdown.

Measuring inflation takes resources, but both the public and the U.S. government itself benefit from having an accurate read on price changes. 

The June consumer price index will be the latest glimpse into whether tariffs are having an effect on consumer prices.

The federal government’s producer price index can show when higher prices are coming soon to a retailer near you.

Broken down by category, some of the sectors most impacted by tariffs saw a price decline from last month, including apparel and used cars and trucks.

Costs are still high. And according to the CPI for February, there were lots of price hikes and price drops within the grocery sector.