The Federal Reserve's inflation target is 2.0%. That target is tied to the PCE Price Index, which has different component weightings than the CPI does and captures the substitution effect that the CPI ...

The CPI is a measure of inflation and deflation. The CPI report uses a different survey methodology, price samples, and index weights than the producer price index (PPI), which measures changes in ...

Notably, inflation in housing costs—a major CPI component—showed signs of easing. PCE, which weights housing costs less heavily than CPI, could provide a clearer signal on the broader ...

The CPI and PPI prints imply that PCE Core will come in at a cool .2% when it is reported at month end. Core CPI printed cool at .2% versus .3%, with headline higher than core due to seasonal ...

The PCE can better account for substitutions between similar items when one of them becomes more expensive. The annual rate of inflation as of December, according to the CPI, is 2.9% over last year.

The so-called core consumer price index — which excludes food and energy costs — increased 0.2% after rising 0.3% four straight months.

The Federal Reserve's inflation target is 2.0%. That target is tied to the PCE Price Index, which has different component weightings than the CPI does and captures the substitution effect that the CPI ...

That measure — known as the personal consumption expenditures price index — doesn’t put as much weight ... the CPI report, several economists called for the December core PCE — due at ...

However, rounded down, the team at CapEcon is expecting core PCE to come in at 0.1%. Still, the year-over-year rate is expected to hit 2.8%. "The 0.23% m/m increase in core CPI in December appears ...

Thus, core CPI is settling at around 3.5% level - and this is well above the Fed's target of 2% core PCE inflation ... rent of residences OER, which weights 27.1% in the overall price index.