What do different measures of inflation tell us?

Jun 30, 2022
The PCE and CPI measure different things, but the message they send to consumers may influence expectations — that then can affect inflation.
One thing that can really mess with what inflation is doing? What consumers think inflation will do.
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Some prices take longer than others to drop — and longer than inflation

Jun 13, 2022
Some essentials — notably food — may may maintain their price strength. Appliances and furniture may come down quicker.
Meat prices have climbed 14% from a year ago, and it may take a while for those price gains to slow.
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"Owners' equivalent rent" a key property of inflation

Jun 10, 2022
OER, a component of the consumer price index, involves homeowners’ estimates of what their residence would rent for.
In the process of calculating the consumer price index, the Bureau of Labor Statistics asks homeowners how much money, hypothetically, they'd rent their place out for.
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Inflation eases, but uneasy consumers expect more price hikes

May 11, 2022
Will worries about higher costs down the road lead to curtailed spending?
Inflation is slowing slightly, but economic anxiety is ramping up.
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When it comes to inflation measures, the Federal Reserve prefers the PCE

Apr 29, 2022
For monetary officials, the personal consumption expenditures gauge beats the CPI. A trip to the grocery store helps explain why.
When pressed about fighting inflation, survey participants say they want to hold the line on prices for essentials, says Eric Plutzer of the McCourtney Institute for Democracy. But "those policies require the Congress and the president to work together."
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Why inflation hits harder, depending on who you are

Apr 25, 2022
People who spend a bigger chunk of their budget on gas and groceries are disproportionately impacted by rising prices.
We all have our own personal inflation rate, depending on what we buy. Above, a shopper at a grocery store in Los Angeles.
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Inflation is high, but has it peaked?

Jan 12, 2022
Inflation is high but decelerating. So when will it decelerate to something normal?
Though there are hints that inflation may be near its peak, economists debate how long factors that influence it — like the labor shortage — could persist.
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For people on benefits, inflation adjustments lag behind

Dec 10, 2021
Social security and SNAP benefits are adjusted every year for inflation. While that tends to be enough in normal years, it's not enough right now.
For those on fixed incomes, inflated prices on everyday items like rent and food can hit particularly hard.
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