Dec 22, 2021

How do you measure inflation? It helps to know your PCEs from your CPIs.

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Also today: Concerns over omicron have led to several big-name companies bailing out of the Consumer Electronics Show, one of tech's biggest events. Susan Schmidt of Aviva Investors is here to talk about the markets with us.

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What the PCE index tells us about inflation

by Amanda Peacher

Dec 22, 2021

The Fed looks to the Personal Consumption Expenditures, or PCE – as a real time measure of inflation alongside the Consumer Price Index.

The PCE factors in consumer substitutions, like if people buy chicken instead of beef because it's cheaper.

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