ETFs Affected by the Consumer Price Index, But How Is It Put Together?

May 07, 2008 at 6:00 am by Tom Lydon      Bookmark and Share

Warhol_dollar_signWhen the Federal Reserve makes decisions that cause the markets and exchange traded funds (ETFs) to move, one of the things they consider before making that call is the rate of inflation.

One facet of the rate of inflation is the Consumer Price Index, which is put together by the Bureau of Labor Statistics. It gathers 84,000 prices in 200 categories – everything from gasoline, bananas, clothing and garbage collection.

The New York Times put the form of an interactive graphic, and it’s worth a look.

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