06-17-2022, 10:36 AM
Quote:The big three inputs for the consumer price index, the most widely followed inflation measure, are food, energy and shelter. Combined, they make up about 54% of the CPI. More importantly, though, they are the main inputs into perceptions of inflation. Because going to the grocery store and filling up the gas tank are activities people do a lot, they tend to notice price fluctuations in them even more. That's particularly true for gas prices, although they actually make up only a small part of the household budget. "Those are the basics," said Tom Porcelli, chief U.S. economist at RBC Capital Markets. "That's what you have to spend money on. You have to spend money on shelter, you have to spend money on food, and most of us have to spend money on energy. [Inflation] represents a meaningful challenge for consumer spending."Everyone knows inflation is on fire. This is what's really fueling it