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PCE

The Fed's about to get its preferred measure of inflation. Here's what it could mean.

by Stephanie Hughes
Oct 30, 2024
The PCE index could come in at the central bank's much-vaunted target of 2% inflation.
The PCE may have dipped to or close to the Federal Reserve's 2% inflation goal, thanks in part to falling gas prices.
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The federal government has two main measures of inflation. They don't agree.

by Nancy Marshall-Genzer
Sep 9, 2024
The CPI shows consistently higher inflation than the PCE because it emphasizes different prices. Their gap has been wider than usual.
One reason for the gap between CPI and PCE inflation numbers? The CPI asks consumers how they're spending their money, while the PCE measures all money spent by consumers and businesses.
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Americans are spending a lot and not saving much. Economists aren't too worried. Yet.

by Caleigh Wells
Aug 30, 2024
One reason? Savings rates are coming down from a high early in the pandemic, when many Americans were able to hold on to extra cash.
With wage growth, falling inflation and increased consumer spending in the U.S. — signs of a strong economy — is a low savings rate cause for alarm?
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The federal government's inflation measures can feel ... wrong. How accurate are they?

by Nancy Marshall-Genzer
Apr 30, 2024
CPI and PCE can both seem to be out of step with consumers' experience.
The CPI and PCE each have their own basket of goods and services they keep an eye on to determine how inflation is doing.
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Americans are saving less. That might actually be a sign of economic strength.

by Henry Epp
Apr 26, 2024
If interest rates fall, expect savings rates to do the same.
A lot of people might still be holding on to some of the money they tucked away earlier in the pandemic, says Tim Quinlan, senior economist at Wells Fargo.
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What do falling inflation and rising incomes mean for consumer spending?

by Justin Ho
Feb 29, 2024
The January PCE report showed inflation easing further but still significant. Moderation in spending could also continue, analysts say.
Wage growth was resilient in January, but Social Security and other factors added to income gains.
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Want to know where inflation's headed? Look to the producer price index

by Nancy Marshall-Genzer
Feb 20, 2024
It's usually called a measure of wholesale prices, but it can also be a leading indicator that shows where consumer prices are headed.
The cost of hospital outpatient care was up more than 2% last month. Health care costs are included in both the PPI and PCE.
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Restaurants outpacing grocery stores when it comes to inflation

by Kristin Schwab
Dec 25, 2023
Supermarkets and restaurants business relies on selling food. So why are prices rising more in the latter?
On average, labor costs eat up about 30% of a restaurant’s gross revenue.
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Health care costs were a main driver of inflation in September

by Kimberly Adams
Oct 27, 2023
Rising costs for prescriptions and hospital services were felt in latest PCE report, though health inflation has been mild in the past year.
By the end of the decade, health care is expected to account for about a fifth of the U.S. economy.
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What’s the difference between CPI and PCE?

by Nancy Marshall-Genzer
Oct 27, 2023
The consumer price index and the personal consumption expenditures price index measure the changing cost of different baskets of goods.
Housing is a bigger part of the CPI than the PCE, and the increase in housing costs has pushed the CPI higher.
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