Dissertation Writers: inflation rate and the concept of CPI – ECO/561

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Dissertation Writers: inflation rate and the concept of CPI – ECO/561

: Although you will be studying  the concept of CPI in more detail in your ECO/561 class; for the purpose  of this case, you need to use the concepts of percentages, percentage  increase/decrease, and creating and interpreting line charts to compute  the inflation rate in the US economy and determine which time period  experienced the highest inflation rate.

Follow the steps below to complete this signature assignment:

  1. Search for the Federal Reserve Bank of St. Louis (FRED).
  2. On the home page of the website, you will see a search box.
  3. Type in CPI- AUCSL in the search box and press the return key.
  4. The first result of the search will be “Consumer Price Index for All Urban Consumers: All Items.” Click on this result link.
  5. Click on the Download link and download the data in Excel®.
  6. On the Excel® file, the second column gives you the CPI values for each period starting from 1947.
  7. Go to the last row and notice the last date and the CPI value. Go  back 6 years from this last date. For example, if the last date is  2016-11-01, then the date 6 years ago would be 2010-11-01.
  8. Copy and paste this six years data into a separate Excel® tab.
  9. Using Excel®, calculate the percentage change in CPI from  a year earlier for each observation, beginning with the observation one  year later than the first observation. To make this calculation, click  on the blank cell next to the observation corresponding to that date and  then use Formula 1, located in the Signature Assignment Excel® Formulas document (note that in Excel®, the symbol for multiplication is *), where t-1 is the first observation and t  is the observation one year later. For example, to find the percentage  change in CPI from 2011-11-01 to 2010-11-01, refer to Formula 2 located  in the Signature Assignment Excel® Formulas document. Convert this value to a percentage in Excel®.  Repeat this process for the remaining observations (you can use the  copy and paste functions to avoid having to retype the formula).
  10. This new column contains the national inflation rate.
  11. Create a line graph of the percentage changes (inflation rates) from a year earlier.
  12. Which period experienced the highest inflation rate? What was the inflation rate during that period?
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