Inflation Trends in a Rising Interest Rate Environment: An Analysis of Inflation Growth Rate Trends in the Goods Component of CPI, 2022
Thomas Roebker, Andrew Weltman
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In 2022, because of rising and high inflation, the U.S. Federal Reserve aggressively raised the Federal Funds rate with the aim of reversing the upward trend in inflation. In this study, we evaluate the inflation growth rate trends for the durable and non-durable goods sectors of the economy to see if they have had a reversal in trend direction. We carry out 3 empirical analyses: (1) We compare year over year by month inflation growth rates in the durable and non-durable goods sector to see if a trend reversal has occurred. (2) We calculate rolling 3-month growth rates annualized to see if the goods sector growth rates are also declining. (3) Using Step (1) and (2) above, we calculate CPI Inflation growth rates and then compare them to the goods sector growth rates to determine if they 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 Goods Component of CPI, 2022" (2023). Stander Symposium Projects. 2876.
Presentation: 9:00-10:15 a.m., Kennedy Union Ballroom