Consumer Price Index (CPI) And What Veterans Need To Know in 2022

2 Minute Read | 
April 26, 2022

“Okay, so what you’re looking at here is the CPI, the Consumer Price Index, which is kind of a common measure for inflation. It’s this chart goes back to 2001.”

Transcript:

Adam Stalnaker 0:02
Adam and Joe back again, here to talk a little bit more about inflation. You know, we spoke a little bit before about inflation. And what we want to do is we want to share our favorite kind of chart that we’ve been looking at and following. It shows some trends that may be a little bit disturbing, right? Joe, talk us through a little bit of this, this chart here.

Joe Kovach 0:25
Okay, so what you’re looking at here is the CPI, the Consumer Price Index, which is kind of a common measure for inflation. It’s this chart goes back to 2001. But you can see on the right hand side there, which is present day coming, the gray bars, the vertical gray bars are recessions. And coming out of the recession from COVID. In April of 2020, you could see inflation increase was bait, barely even an increase was point 1%. It has skyrocketed now to 6.5%. Year over year increase, which is the highest in over 40 years, you got to go back to the early 1980s to find inflation of this type kicking in and it’s really been a culprit of a lot of different things but the main contributor has been energy that’s been the biggest one that’s up something in low third. Yeah, that range.

Adam Stalnaker 1:11
That’s what everybody sees, you know, you’re driving down the street, you see the the gas prices or you look at your energy bills, right, they’re coming in and they’re they’re definitely year over year, a lot higher.

Joe Kovach 1:21
Exactly. And, you know, some other big contributing factors to that and everybody’s seen housing prices skyrocket, skyrocket, rents have gone up new and used cars, bowls, you know, us cars are crazy expensive right now. So it’s really been a conglomeration, everything is up. Those are just the ones that have been up the most in this period of time. So, you know, it remains to be seen to be determined how high this charts going to get. We’re hoping that it’s starting to kind of max out at this point, but it’s just too early to tell.

Adam Stalnaker 1:49
Absolutely. If anybody’s concerned about how this affects you and your portfolios or have any questions to see, you know, how it affects you personally. Feel free to reach out

Joe Kovach 1:58
Absolutely.