What the Federal Reserve's favorite inflation measure can tell us

Jan 25, 2023
The personal consumption expenditures price index, better known as the PCE, tracks what we paid for goods and services in the previous month.
The PCE give less weight to consumer staples like gasoline than the consumer price index does.
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Shelter costs rose in December while the Consumer Price Index declined. Why?

Jan 12, 2023
Today’s inflation report showed that both the rent and owner-equivalent rent indexes rose 0.8% in December.
Rents fell .8% nationally in December, according to data from Apartment List. Yet rents in the CPI rose by .8% last month,
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Baked goods and cereals cost 16% more in December. What gives?

Jan 12, 2023
Per the consumer price index, bread and cookies cost more dough because their ingredients do too. Yes, the government tracks cookies.
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Are the latest consumer price index numbers a good sign for the economy?

Jan 12, 2023
Prices were up 6.5% over the past year, well above the Fed's targets but the smallest increase since October 2021. It's a sign that inflation is easing.
Shoppers are likely noticing the moderation in food price increases, said Morning Consult's Kayla Bruun.
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Inflation cooled in October, but it's just one month

Nov 10, 2022
There's still a long way to go in easing prices, but some economists think inflation has peaked.
The October CPI shows food prices are still rising, but more slowly than they have in months.
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Inflation is a subjective number

Oct 13, 2022
How much pain you feel paying your bills depends on what those bills are, and who you are.
For some consumers, increased spending at the grocery store is driving their inflation anxiety.
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For producers, inflation is easing just a bit, Labor Department reports

Sep 14, 2022
Producer prices reflect costs throughout the production process. Prices for raw materials are starting to ease.
Price increases have begun to slow in earlier parts of the production process.
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For public good, not for profit.

The price of gasoline is down, but just about everything else is still getting more expensive

Sep 13, 2022
Fresh consumer price index data pretty much guarantees a big interest rate hike when the Federal Reserve meets next week.
The cost of gasoline fell by more than 10.5% in August, according to the Department of Labor's consumer price index. But just about everything else was more expensive.
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Some kinds of inflation are "stickier" than others

Aug 15, 2022
"Flexible" prices, like those for gas and produce, may not track inflation trends as well their "sticky" counterparts, like shelter and dining out.
Processed food is a "sticky" price item. The nonfood expenses, like packaging, advertising, shipping and labor, are likely to stay expensive for a while, says Jim Hertel at Inmar Intelligence.
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Gas prices keep falling, but Americans still feel inflation's bite

Aug 10, 2022
Lower prices at the pump are offering some relief from other areas of inflation, like rent and food. But gas prices are a volatile indicator.
Because gas prices are so volatile, they can be misleading when you’re tracking inflation, says Severin Borenstein of UC Berkeley’s Haas School of Business.
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