This is Bob Doughty with the VOA Special English EconomicsReport.

Concern about inflation is in the news a lot lately. In theUnited States, prices have risen especially for gasoline and otherforms of energy. Higher energy prices lead to higher prices forother goods.

Oil prices are high. But experts say this is not the only reasonfor the current fuel prices. They say companies in the United Statesare making as much oil into gasoline as they can. But drivers needlots of fuel for popular sport utility vehicles and personal trucks.

Government economists reported that inflation rose at a yearlyrate of four-point-four percent between December and April. For allof last year, the United States had an inflation rate ofone-point-nine percent. These numbers are based on the ConsumerPrice Index.

The Consumer Price Index is a way to measure average change inprices over time. It shows how inflation affects the average person.The Bureau of Labor Statistics gives a report each month.

Some economists say the economy may be growing too fast andcausing prices to rise. They expect the Central Bank to raiseinterest rates. Such action raises the cost to borrow money. Lessborrowing and spending can help keep down prices.

The Federal Open Market Committee met this month and decided notto raise interest rates. But the committee meets again in June. Onemeasure it will look at is the Consumer Price Index.

Here is how an index works. Let us say that some object cost anaverage of ten cents in nineteen-ninety. An economist then givesthat price an index value of one-hundred.

In the next year, the price goes up to eleven cents. That is aten-percent increase. So the index value for the year isone-hundred-and-ten. Changes are recorded this way year after year.

The Department of Labor gathers prices that Americans pay formedicines, housing, clothes and food. It gathers prices foreducation, transportation and other activities.

The Consumer Price Index is made up of thousands of measures. Butit does not measure prices in areas outside of cities and largetowns. Also, it does not measure how price changes affect individualgroups, like the poor or retired people.

The measure mostly widely reported is called the Consumer PriceIndex for All Urban Consumers. It measures prices paid by abouteighty-seven percent of Americans.

This VOA Special English Economics Report was written by MarioRitter. This is Bob Doughty.