ECONOMICS REPORT - Inflation and the U.S. Consumer Price Ind

ECONOMICS REPORT - Inflation and the U.S. Consumer Price Index
By Mario Ritter

Broadcast: Friday, May 21, 2004

This is Bob Doughty¹ with the VOA Special English Economics Report.

Concern about inflation is in the news a lot lately. In the United States, prices have risen especially for gasoline and other forms of energy. Higher energy prices lead to higher prices for other goods.

Oil prices are high. But experts say this is not the only reason for the current fuel prices. They say companies in the United States are making as much oil into gasoline as they can. But drivers need lots of fuel for popular sport utility vehicles and personal trucks.

Government economists³ reported that inflation rose at a yearly rate of four-point-four percent between December and April. For all of last year, the United States had an inflation rate of one-point-nine percent. These numbers are based on the Consumer Price Index.

The Consumer Price Index is a way to measure average change in prices over time. It shows how inflation affects the average person. The Bureau of Labor⁴ Statistics gives a report each month.

Some economists say the economy may be growing too fast and causing prices to rise. They expect the Central Bank to raise interest rates. Such action raises the cost to borrow money. Less borrowing and spending can help keep down prices.

The Federal Open Market Committee met this month and decided⁵ not to raise interest rates. But the committee meets again in June. One measure it will look at is the Consumer Price Index.

Here is how an index works. Let us say that some object cost an average of ten cents in nineteen-ninety. An economist² then gives that price an index value of one-hundred.

In the next year, the price goes up to eleven cents. That is a ten-percent increase. So the index value for the year is one-hundred-and-ten. Changes are recorded this way year after year.

The Department of Labor gathers prices that Americans pay for medicines, housing, clothes and food. It gathers prices for education, transportation and other activities.

The Consumer Price Index is made up of thousands of measures. But it does not measure prices in areas outside of cities and large towns. Also, it does not measure how price changes affect individual groups, like the poor or retired⁶ people.

The measure mostly widely reported is called the Consumer Price Index for All Urban Consumers. It measures prices paid by about eighty-seven percent of Americans.

This VOA Special English Economics Report was written by Mario Ritter. This is Bob Doughty.

1 doughty   

adj.勇猛的，坚强的

参考例句：

• Most of successful men have the characteristics of contumacy and doughty.绝大多数成功人士都有共同的特质：脾气倔强，性格刚强。
• The doughty old man battled his illness with fierce determination.坚强的老人用巨大毅力与疾病作斗争。

2 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

3 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

4 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

5 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

6 retired   

adj.隐退的，退休的，退役的

参考例句：

• The old man retired to the country for rest.这位老人下乡休息去了。
• Many retired people take up gardening as a hobby.许多退休的人都以从事园艺为嗜好。