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In 2022, the U.S. Federal Reserve initiated a number of meaningful increases in the Federal Funds Rate in order to reverse the upward trend in inflation. In this study I analyze the inflation growth rate trend in the services sector of the economy to determine if the rise in the Federal Funds Rate had a material impact on its trend direction. I carry out 3 empirical tests: 1) I compare a year over year by month inflation growth rates in the service component to see if a downward trend has occurred. 2) I calculate rolling 3 month inflation growth rates annualized to see if the growth rates are declining. 3) I calculate the same inflation growth rate metrics for CPI to see if the inflation growth rates for the services component and CPI trend together.
Jon Fulkerson, Robert Dean
Primary Advisor's Department
Economics and Finance
Stander Symposium, School of Business Administration
Institutional Learning Goals
"Inflation Trends in a Rising Interest Rate Environment: An Analysis of Inflation Growth Rate Trends in the Services Component of CPI, 2022" (2023). Stander Symposium Projects. 2875.