FEAR & GREED | Business News Ask Fear & Greed: What's the difference between monthly and quarterly CPI?
May 29, 2025
Explore the intriguing distinctions between monthly and quarterly Consumer Price Index data. Discover how goods experience rapid price fluctuations while services remain stable amidst inflation. The conversation highlights the impact of these reports on understanding inflation trends and making economic decisions. From interest rates to market reactions, the insights reveal why it's crucial to pay attention to both types of data for a comprehensive view of the economy.
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Monthly vs Quarterly CPI Difference
- Monthly CPI is narrower, covering about 43% of the quarterly CPI content with a focus on goods.
- Quarterly CPI is broader, including more services like insurance and education, capturing more comprehensive inflation data.
Goods Are Volatile, Services Sticky
- Goods prices are more volatile, reacting quickly to changes like currency fluctuations.
- Services prices are "sticky," changing less frequently, often annually or quarterly, impacting inflation trends differently.
Personal Trainer Anecdote
- Sean humorously notes the unlikelihood of him committing to a 12-month personal trainer contract.
- This illustrates the concept of service prices being locked in for longer periods, unlike goods prices.