PCE and GDP Inflation Rise While CPI Cools, Raising Questions for Fed

PCE and GDP inflation measures have increased to 2.9%, 3.0%, and 3.7% respectively, while CPI inflation has cooled to 2.4%. This divergence is attributed to the differing weights of housing in each index, prompting the Fed to pay serious attention.

21 Feb, 06:19 — 21 Feb, 06:19

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wolf-street16h ago

PCE Inflation (2.9%, 3.0%) and GDP Inflation (3.7%) Got Hotter, but CPI Inflation (2.4%) Cooled. Why? The Fed Needs to Pay Serious Attention

The PCE price index gets pushed down far less by the doctored housing index than CPI does because housing weighs half as much in PCE.

By Wolf Richter

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PCE and GDP Inflation Rise While CPI Cools, Raising Questions for Fed

Read at source (1 outlet)

PCE Inflation (2.9%, 3.0%) and GDP Inflation (3.7%) Got Hotter, but CPI Inflation (2.4%) Cooled. Why? The Fed Needs to Pay Serious Attention

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