Inflationary Pressures on Cost and Pricing Strategies

The Consumer Price Index (CPI) is one of the most well-known measures of the price level. Measured by the Bureau of Labor Statistics (BLS), the Consumer Price Index is based on the price for a hypothetical market basket of goods for a typical consumer and compares how the price changes over time. The Consumer Price Index seeks to measure the change of one period to another, and can be very useful in determining inflationary trends.

Upon completion of this assignment, you should be able to:

Analyze the effects of inflation on costs and price strategies.
Resources
Media: Chapter 16, Animations 16.1–16.5
File: Chapter 16 Animation Transcripts
Websites:
What is inflation and how does the Federal Reserve evaluate changes in the rate of inflation? http://www.federalreserve.gov/faqs/economy_14419.htm
Why does the Federal Reserve aim for 2 percent inflation over time? http://www.federalreserve.gov/faqs/economy_14400.htm
Inflation and the Federal Reserve: The Consequences of Political Money Supply: http://www.cato.org/publications/policy-analysis/inflation-federal-reserve-consequences-political-money-supply
The Fed Explains Inflation: http://www.frbatlanta.org/news/multimedia/12fedExplained_inflation.cfm
The Inflation Project: http://www.frbatlanta.org/research/inflationproject/tutorial.cfm
Background Information
The Consumer Price Index is a valuable tool for measuring inflation over time. The CPI is measured using urban consumers who spend their money on a “market basket of goods” that include food and beverages, housing, apparel, transportation, medical care, recreation, education, communication, and other services. The change in CPI is based on current and base year prices.

Instructions
Watch the following animations. To move through the animation sequence, click Next until you reach the end of that animation sequence. These animations will prepare you for the discussions and other assignments in this and upcoming workshops.
Animation 16.1
Animation 16.2
Animation 16.3
Animation 16.4
Animation 16.5
Review the information available on the following websites. You will use that information to answer the questions below.
What is inflation and how does the Federal Reserve evaluate changes in the rate of inflation? http://www.federalreserve.gov/faqs/economy_14419.htm
Why does the Federal Reserve aim for 2% inflation over time? http://www.federalreserve.gov/faqs/economy_14400.htm
Inflation and the Federal Reserve: The Consequences of Political Money Supply: http://www.cato.org/publications/policy-analysis/inflation-federal-reserve-consequences-political-money-supply
The Fed Explains Inflation:http://www.frbatlanta.org/news/multimedia/12fedExplained_inflation.cfm
The Inflation Project: http://www.frbatlanta.org/research/inflationproject/tutorial.cfm
After watching the animations and reviewing the information on the preceding websites, respond to the following:CPI: Inflation Picks Up
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%.
What percentage change in the CPI up until August is accounted for by the changes in the prices of food, clothing, and medical care?
Given the changes in food, clothing, and medical care, by what percentage did the prices of the other items in the CPI basket change?
Why did the prices of the other items change?
What is the probable impact of the change of other items in the CPI basket?
You must incorporate a minimum of three sources in addition to the textbook in this assignment. Your three sources may include scholarly sources, credible newspapers, trade journals, or websites listed here. Be sure to use OCLS to find these sources.
Your entire assignment must be APA formatted.
When you have your assignment, save a copy for yourself and submit a copy to your instructor using the Dropbox by the end of the workshop.

 

 

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

At homeworkcheg.com, You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with at HomeworkCheg, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency