PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

CPI Report: Calm Remains on Inflation Front

By at 10 December, 2020, 1:25 pm

by Raymond J. Keating-

Finding something to be calm about in this economy is a rare phenomenon that is worth welcoming. That continues to be the case on the inflation front.

Specifically, the Consumer Price Index rose by 0.2 percent in November, according to the latest report from the U.S. Bureau of Labor Statistics. And that came after being flat in October and up by 0.2 percent in September.

Source: Federal Reserve Bank of St. Louis, FRED

When the pandemic hit earlier this year, volatility naturally did as well on the price front. So, CPI plunged in March and April, experienced a small decline in May, and then spiked in June, July and August.

While entrepreneurs, businesses, investors and consumers continue to face uncertainty and instability on several fronts, low and stable inflation is a positive in terms of investment, borrowing, pricing and operational decision-making.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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