2021: The Year of High Inflation

What was the inflation rate measured by the PCE price index in February 2022?

• 6.4%

• 4.3%

• 7.9%

• 5.8%

Which category had the highest inflation rate in 2021?

• Services

• Durable Goods

• Nondurable Goods

• Energy

What is excluded when computing core PCE?

• Food and Energy

• Durable Goods

• Housing and Health Care

• Nondurable Goods

What was the annualized inflation rate for services during the COVID-19 period?

• 1.7%

• 4.3%

• 3.3%

• 2.6%

What was the main cause of high inflation according to the text?

• Supply and Demand Factors

• Government Policies

• Technological Advancements

• Natural Disasters

What are the lasting impacts of the inflation we experienced in 2021?