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How do you find out the current rate of inflation?

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Quick Answer

To find the rate of inflation over any period of time, consult the consumer price index maintained by the Bureau of Labor Statistics, explains InflationData.com. By gathering data from all U.S cities, this index measures average price increases for all types of merchandise aside from food and energy, reports the U.S. Department of Labor. In the first six months of 2015, the U.S inflation rate ranged from 1.6 to 1.8 percent.

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Full Answer

The consumer price index, or CPI, is just one of many tools for measuring inflation, according to the U.S. Department of Labor. The CPI monitors inflation seen by consumers in the course of paying living expenses. The producer price index is another inflation-measuring index that details cost increases for companies as they produce and market products for the public. The employment cost index measures how inflation affects the U.S labor market.

Many different phenomena, including changes in consumer confidence, supply-and-demand factors and corporate decisions, affect inflation rates, reports Investopedia. Manufacturers and investors may benefit from inflation. Low unemployment rates and stable wages encourage consumers to spend instead of saving their money. This leads to price increases, as companies charge more for high-demand products and services. Overall, American consumers see little benefit from high inflation rates.

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