Reply #3: Actually, there is a very big problem here [View All]

[mrdmk]

The problem is you have a inflation rate of 3.82% and a unemployment rate climbing above 4.6% (it very normal for the unemployment to drop this time of year), and the GDP at 2.6%. The target rates are, the inflation rate needs to be between 2 - 3%, the unemployment rate is to be between 4 -6%, and the GDP needs to expand at 2% +/- 0.1%. Having a high inflation rate and high unemployment at the same time is very bad news. No wonder consumer confidence is down.


Unadjusted unemployment rate


The inflation rate is as follows:

<(new -old)/old> x 100 = %

{<203.9 (index from Aug. 2006) - 196.4 (index from Aug. 2005)>/196.4} x 100 = 3.82% inflation

link to table ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

edit: clarity