Summary
New numbers show an inflationary wave is still building in the U.S. economy. The labor department reports consumer prices jumped more than six percent in October as compared to a year ago — the biggest increase in 31 years. Key terms: Inflation refers to the increase in the cost of good and services throughout the economy. Inflation is a normal feature of any growing economy, but sometimes it grows at a faster rate and can lead to strain for consumers, especially when wages don't grow as quickly.Five Facts
- Who is interviewed in the second half of this piece, and what is her background?
- What sort of common consumer goods have become more expensive, leading to a 6% growth in consumer costs?
- What are some of the reasons for the inflation spike as identified in this piece?
- Why did President Biden tour the Port of Baltimore today?
- How does the federal government plan to bring down inflation?
Focus Questions
How do you think inflation will impact your community or your daily life? How do you think it will affect the economy in general?
Media literacy: In this report, the average price of a gallon of gas is said to be around $3. If that is the case, why do you think the producers chose this image to go with the story? Do you think they should have chosen an image that reflects the average, rather than an extreme example?
For More
What do the numbers mean in the story above? When journalists say that gasoline has risen 40%, what is that being compared to? In most cases, these numbers are being compared to the same month of the previous year. All consumer prices compared to the previous year averaged together make up what is called the Consumer Price Index (CPI), which is typically the number that journalists and others site when discussing inflation. Whenever discussing inflation using CPI, therefore, it's worth thinking about what was happening the year before (in this case, many costs were down due to low demand during the pandemic. To learn more about the CPI and browse what sorts of things have become more expensive in the past year, see this data from the Bureau of Labor Statistics .To receive the Daily News Lesson in your inbox each morning, sign up here .
