Customer Price Index (CPI) and Inflation

The United States value of the dollar and the consumerís purchasing power depends on the price of frequently purchased consumer items. Household goods and services represent a suitable example for estimating the purchasing power of consumer dollars. The consumer price index (CPI) considers the weighted average of the common household goods and services to determine the economic trends.

Rebound

The Coronavirus pandemic induced a downward economic turn on the global economy as most states and nations imposed lockdowns and curfews advising people to stay at home. Halting business operations and industrial operations led to a decline in consumer prices, which is now rebounded (Omeokwe). A cost rebound is, therefore, a shift in prices from a lower level indicating increased economic activities.

CPI rebound is mostly harmful to the consumer since it forces the people to obtain goods and services at a higher price straining the purchasing power of consumer dollars. Usually, consu...