Infographic: All of Inflation’s Little Parts
If you want to understand recent inflation (that is prior to the crisis) you should take a few minutes to study this chart.
(H/T To Paul Kedrosky for finding this)
Introduction (Via NYT)
Each month, the Bureau of Labor Statistics gathers 84,000 prices in about 200 categories — like gasoline, bananas, dresses and garbage collection — to form the Consumer Price Index, one measure of inflation. It’s among the statistics that the Federal Reserve considered when it cut interest rates on Wednesday. The categories are weighted according to an estimate of what the average American spends, as shown below.
Each shape below represents how much the average American spends in different categories. Larger shapes make up a larger part of spending.
Click On The Image To Access A Larger Version
Image Accessed Via NYT (Presented for Educational Use Only)