who can tell me the different betwen CPI and PCE inflation?
Publishing Body : CPI – released by the Bureau of Labor Statistics. PCE – index is published by the Bureau of Economic Analysis. Formula: CPI – Is a fixed-weight price index aggregating roughly 200 different categories of products and services purchased by a typical consumer. A fixed weight index uses a constant basket of goods to determine how much more one pays for an identical basket today versus a base year. Weights are determined by base-year expenditures (currently 2001-2002). PCE – Uses a chain-weighted quantity index which measures how much it costs to buy a constantly evolving basket of goods. Scope CPI – Covers out-of-pocket consumer expenditures by urban consumers. The Consumer Price Index measures the monthly change in prices for a fixed market basket of goods and services. These goods and services fall into one of eight major groups : housing, food and beverage, transportation, medical care, apparel, recreation, education and communication and other goods and services. PCE
