Page 15 - NBIZ October 2021

That is a true concern. In the most recent University BLS prices over 200 items and services each month
of Michigan Survey of Consumers, respondents expect to pro duce the CPI. Those prices fall into eight major
infla tion to average 4.7 percent through July ’22 and 2.9 categories:
percent over the next five years. It’s too soon, though, to • Food and beverages (breakfast cereal, milk, coffee,
see if this will lead to upward pressure on wages. The chicken, wine, full-service meals, snacks)
Partnership agrees with the Fed’s assessment that the • Housing (rent of primary residence, owners' equiv-
current bout of high inflation might last longer than first alent rent, utilities, bedroom furniture)
anticipated, but the surge will eventually fade. • Apparel (men's shirts and sweaters, women's
dresses, baby clothes, shoes, jewelry)
A PEEK INSIDE THE BLACK BOX • Transportation (new vehicles, airline fares, gaso-
The Bureau of Labor Statistics prepares the monthly line, motor vehicle insurance)
CPI for the U.S., its four geographic regions, nine census • Medical care (prescription drugs, medical equip-
divisions, and 23 metro areas. Houston is one of those ment and supplies, physicians' services, eyeglasses
metros. The index is used to adjust income eligibility and eye care, hospital services)
for government assistance, tax brackets, Social Security • Recreation (televisions, toys, pets and pet products,
payments, private sector wages, salary in creases, pover ty sports equipment, park and museum admissions)
me a s ures, and rent escalations. • Education and communication (college tuition,
The federal govern ment began gathering data for the postage, telephone services, computer software)
CPI back in 1913. The Partnership has data on Houston- • Other goods and services (tobacco products, hair-

area in fla tion dating back to 1915. The goods and services cuts, and other personal services, funeral expenses)
tracked by the BLS over 100 years ago are likely much The bureau prices approximately 80,000 goods and
different than what’s tracked today. services each month at over 23,000 establishments.

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