The personal consumer expenditures price index is one of the Fed's favorite tools for tracking inflation.
Core inflation strips out food and energy prices, because they can be pretty volatile.
The Consumer Price Index tracks the average price change over time for a “basket” of goods and services. The CPI takes into account things like food, transportation and health care. If the CPI goes up, that’s considered an indication that the inflation rate is rising. But when the Federal Reserve calculates the inflation rate, it […]