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Should consumers be concerned?
As a finance expert, I believe the answer to this question lies in a closer look at what actually goes into the main way the U.S. measures inflation.
A big increase in use car prices drove the inflation rate higher in April.
What is inflation?
Inflation is defined as the change in the price of everything from a rib-eye steak and a bar of Ivory soap to an eye exam or tank of gas.
In the U.S., the most commonly used measure of inflation is based on the consumer price index. Simply put, the index is the average price of a basket of goods and services that households typically purchase. It’s often used to determine pay raises or to adjust benefits for retirees. The year-over-year change is what we call the inflation rate.