by Dr. Mark Shore
CME Group
Inflation rose across much of the world as the COVID-19 pandemic disrupted supply chains and changed consumption patterns during a period of social sequestration. In the United States, inflation topped 9% at its peak, but has since come down sharply although it remains stubbornly above the Federal Reserve’s (Fed) 2%target. In the U.S., the rate of inflation is primarily measured by two indicators: The Consumer Price Index (CPI), calculated by the Bureau of Labor Statistics (BLS), and Personal Consumption Expenditures (PCE), calculated by the Bureau of Economic Analysis (BEA). These indicators contain a variety of prices across several sectors such as food, energy, durable goods, services, transportation, and rent.