CPI vs. PCE: Untangling the Alphabet Soup of Inflation Gauges
Fed’s preferred measure of consumer-price growth may not be the one you think, but both have their place
When it comes to gauging inflation, the U.S. Federal Reserve has a preferred measure, and it’s not the one that consumers most often hear about.
The best-known inflation indicator in the U.S. is the consumer-price index, a measure of the average prices paid by consumers for a common basket of goods and services that serves as a barometer of...