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CPI vs PCE to Create Inflation Confusion
- Autor: Vários
- Narrador: Vários
- Editor: Podcast
- Duración: 0:04:31
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Sinopsis
The Fed may have a difficult time determining its progress against inflation later this year, as the two biggest inflation indicators contradict each other. The Federal Reserve prefers the Personal Consumption Expenditures index or PCE as a basis for its 2% inflation target. But due to the differences between the PCE and the Consumer Price Index or CPI, they might reverse their roles and cause confusion. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please don’t forget to subscribe to our podcast, and leave us a five-star review if you like what you hear! The CPI is more closely watched by average Americans, and it’s been the one to show the highest level of inflation. But according to an analysis in the Wall Street Journal, as inflation subsides, it could drop below the PCE, making it difficult for the Fed to explain rate hikes based on the PCE. (1) Difference Between the CPI and the PCE Indexes Economists are betting that the CPI will fall to 2.6% in October while the PCE will dro