personal consumption expenditures price index Archives - Marketplace

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.

Eric Thayer/Getty Images

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