U.S. Core CPI Drops by Most on Record in April

The video discusses the historical context and current state of the Consumer Price Index (CPI) data, highlighting a significant drop in the core rate due to the economic shutdown. It explores the impact of reduced demand on prices, particularly in sectors like gasoline and apparel. The discussion shifts to concerns about deflation and the potential for future inflation, considering factors like oil prices and economic recovery. The Federal Reserve's perspective on temporary deflation and the timeline for inflationary pressures are also examined.

What was the largest contributor to the headline drop in the CPI?

• Apparel prices

• Gasoline index

• Airline fares

• Used cars and trucks

What is the current year-over-year rate mentioned in the discussion on deflation?

• 4/10 percent

• 3/10 percent

• 2 percent

• 1 percent

According to the discussion, when was the last time the economy experienced deflation?

• 2010

• 2015

• 2008

• 2018

What needs to happen for inflation to become a concern according to the discussion?

• An increase in apparel prices

• A significant rise in oil prices

• A decrease in oil prices

• A decrease in demand

What does the Federal Reserve have before needing to worry about inflation?

• A lot of uncertainty

• A lot of pressure

• A lot of challenges

• A lot of cushion