Economic Trends

Filling you in on the current state of the economy.

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  • PCE and CPI Inflation: What’s the Difference?
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  • Two oft-cited measures of inflation are the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) price index. Since 2000, the inflation rate as measured by the CPI has been about half a percentage point higher than PCE inflation. The differences in the two inflation rates can be explained largely by differences in the basket of goods and services that is used to calculate each index and the weights assigned to different prices in each basket.

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