Market Update: How The Fed Gauges Inflation

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by: CME Group
Summary

Pay attention to the four factors the Federal Reserve looks at when determining the rate of inflation.

The consumer price index, producer price index, the employment cost index and wages.

These are not just standalone economic releases, look at them in three month stretches. It’s very important to gauge what the trend is.

By OpenMarkets

Jack Bouroudjian explains the four factors the Federal Reserve looks at when determining the rate of inflation: the consumer price index, producer price index, the employment cost index and wages.

“Pay attention to these, not only as standalone economic releases, but look at them in three month stretches. It’s very important to gauge what the trend is,” he says.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.