Podcast Summary
Impact of Inflation on Everyday Life: Inflation affects everything and was the topic of a game show episode featuring a cancer research professional
Key takeaway from this episode of Planet Money's Indicator Quiz is the discussion around inflation and how it impacts various aspects of life. Royce Nita, a strategic initiatives manager from Brooklyn, New York, joined Darion and Adrienne Ma as a contestant on the quiz. The topic of the quiz was inflation, and Royce shared his personal experiences with the economic concept. Inflation was described as being everywhere and affecting everything. The Indicator Quiz is a game show that combines economics and trivia, and all questions are based on economic ideas touched upon in the show. Royce expressed his excitement to be a part of the quiz and shared his profession, which involves helping bring new cancer treatments and research to the public. The episode also featured sponsor messages from Arctic Wolf and Integrative Therapeutics. Overall, the episode highlighted the impact of inflation on everyday life and showcased Royce's noble profession.
Understanding Core CPI vs CPI: Core CPI excludes food and energy to give a clearer view of overall price trends, while CPI measures all goods and services price changes.
While the Consumer Price Index (CPI) is the most commonly used measure of inflation, economists often focus on the Core CPI for a more accurate understanding of price trends. The CPI measures the average change in prices of a basket of goods and services over time, and in June 2022, experienced the highest annual increase in decades, which was 9.1%. Core CPI, on the other hand, excludes the volatile categories of food and energy to provide a clearer picture of overall price trends. The US Bureau of Labor Statistics is indeed the government agency responsible for calculating the CPI.
Misconception about US Inflation Data Reporting Agency: The Bureau of Labor Statistics reports US inflation data, not the Bureau of Economic Analysis or Commerce Department.
The Bureau of Labor Statistics, not the Bureau of Economic Analysis or Commerce Department, is responsible for reporting inflation data in the US. Royce, a strategic ideator, was mistaken about this, but he's also an avid fan of "The Great British Baking Show" and a skilled baker himself. The topic of discussion then shifted to the preferred measure of inflation by the Federal Reserve, which is the Personal Consumption Expenditures Price Index, not the Core Consumer Price Index or the Federal Reserve Inflation Index. This misconception was corrected during the quiz, where roles were switched, and Adrian took over asking the questions. Royce's passion for baking and his determination to improve showed throughout the conversation.
The Fed uses a different inflation measure than the CPI and aims to keep inflation at 2%: The Fed raises interest rates to increase borrowing costs and combat inflation, a policy pioneered by New Zealand in 1990
The Federal Reserve uses the Personal Consumption Expenditures (PCE) price index, which looks at a broader range of prices than the Consumer Price Index (CPI), to help guide its monetary policy decisions. The Fed aims to keep inflation at a target rate of 2% year over year, a goal that was pioneered by New Zealand in 1990. To bring down inflation, the Fed raises interest rates, which increases the cost of borrowing. In the quiz, Royce was correct in answering that raising interest rates increases the cost of borrowing, and he also correctly identified New Zealand as the country that pioneered inflation targeting. If you're interested in being a contestant in the next indicator quiz, email indicator@npr.org with your name and phone number by the end of the day on Monday, February 13th. This episode was produced by Viola, engineered by Catherine Silva, and fact-checked by Sierra Juarez.
Real Estate Investments with Discounts During High Interest Rates: Consider expanding real estate portfolio during high interest rates for potential discounts. Fundrise offers a $1 billion real estate portfolio investment option.
Real estate investments can offer attractive discounts during periods of high interest rates, making it an opportune time to consider expanding a portfolio. The Fundrise flagship fund, with a goal to expand its $1 billion real estate portfolio, is one option for potential investors. Meanwhile, in the world of social media, the trend of "trad wives" or traditional wives has gained popularity, revealing underlying pessimism about modern life. This week on "It's Been a Minute" from NPR, we delve deeper into this phenomenon and discuss what it reveals about our society. Additionally, Kickin' Cannon edits the NPR show, and the sponsorship messages come from Fundrise and Saatva. Fundrise offers real estate investments with potential discounts due to high interest rates, while Saatva provides luxury mattresses at affordable prices through online sales. As always, it's essential to carefully consider the investment objectives, risks, charges, and expenses before investing in any fund. To learn more about the Fundrise flagship fund, visit fundrisedot.com/npr. For those in the market for a new mattress, visit visitsdoubleatva.com/nprandsaveanadditional200 to explore Saatva's offerings and enjoy an additional discount. Stay tuned for next time on "It's Been a Minute" from NPR, where we'll continue exploring the intriguing aspects of our modern world.
