Questions:

1.

a. At what rate did U.S. consumer prices rise in Februaryfrom a month earlier?

b. At what rate did U.S. consumer prices rise in Februaryfrom a year earlier?

2.

a. What is Core Inflation Rate?

b. At what rate did U.S. core inflation rise in February from a month earlier?

c. At what rate did U.S. core inflation rise in February from a year earlier?

3.

a. Given that U.S. consumer prices index (CPI) is anweighted average of all regular goods & services, does the index is an effective tool of gauging the price changes in the economy?

c. What is your expectation of the inflation for next one year? Give at least two reasons for your inflation expectation.