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Stephanie Pomboy & Grant Williams: Investors Need To Realize Change Is Upon Us
Thoughtful Money with Adam Taggart
Understanding CPI: Index, Not Just a Percentage
The Consumer Price Index (CPI) is often misinterpreted as a fixed percentage, when in fact it represents an index reflecting rate changes over time. While people commonly reference CPI as a percentage, it is vital to recognize that this percentage indicates the rate of inflation, not the actual value of the index. Understanding CPI as an index underscores the impact of compound inflation, where successive increases accumulate, leading to significant price rises if each year's inflation adds to the previous year’s prices.
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