Eco 561 Week 4 Inflation And Anlyses Of Monitary Policies

Week4: Inflation and Analysis of Monetary PolicyChristina ForresterECO/561June 22, 2018Inflation and Analysis of monetary Policy: Food and BeveragesThis analysis covers food and beverages which includes subcategories such as breakfast cereal, coffee, milk, chicken, wine, snacks, and full-service meals. The choice of food and beverages was because they represent common daily needs among all American citizens, and most households must comply with their hunger needs either at home, hotels, or anywhere. According to Federal Reserve Bank of St. Louis’s FRED economic research, the annual average for food and beverages was 147.200, 189.100, 218.898, and 247.749 for the years 1995, 2005, 2010, and 2015 respectively. This data shows a rising trend as well as an unpredictable pattern. Percentage change for food and beverages for periods between 1995 and 2015Food and beverages 1995200520102015Annual average 150.300193.300221.556247.749Percentage change0%28.6%47.4%64.8%The above assessment uses 1995 as the base year, which reveals a 28% rate increment over vitality class. This means that family units had to spend more money in the survey periods for food and beverages.Trends in Overall Inflation Rates over the Last Five YearsThe overall inflation rate