An increase in prices at the wholesale level is often passed on to consumers at the retail level, resulting in an increase in the inflation rate. An increase in prices at the retail level, is considered inflationary. A decrease in prices is considered deflationary. The monthly statistic on the growth of consumer credit is the total aggregate amount of consumer debt, excluding housing. An increase suggests consumers are confident about their jobs and ability to repay debt over the ensuing months.
Consumers use debt to buy goods and services, stimulating economic growth.
Conversely, a decrease suggests consumers are scaling back debt and may postpone the purchase of goods and services, inhibiting economic growth. The report is released each quarter, but is revised several times after new economic data is released. A strong rise in economic growth sometimes suggests there may be inflationary pressures on the horizon. Conversely, a decline in economic growth is considered deflationary. In conclusion, the Federal Reserve monitors the economy to assure there is full employment, low inflation and modest growth.