Whats the Difference Between the CPI and PCE Indexes?
After three hotter-than-expected CPI reports to start the year, investors will closely watch PCE data in the coming months. CPI inflation generally runs about 0.4 percentage points higher than PCE inflation. However, at its peak in the summer of 2022, CPI inflation was almost 2 full percentage points higher than PCE inflation (9.0% vs. 7.1%). …
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