{"id":14665,"date":"2023-06-20T09:09:55","date_gmt":"2023-06-20T14:09:55","guid":{"rendered":"https:\/\/tienda.gsgeducation.com\/?p=14665"},"modified":"2025-03-03T18:32:29","modified_gmt":"2025-03-03T23:32:29","slug":"crosswalk-talk-whats-the-difference-between-the","status":"publish","type":"post","link":"https:\/\/tienda.gsgeducation.com\/?p=14665","title":{"rendered":"Crosswalk Talk: Whats the difference between the PCE and the CPI? CEA"},"content":{"rendered":"

\"what<\/p>\n

Given economists\u2019 congenital on-the-one-hand-on-the-other proclivities, do not bother asking us which measure is best (at the CEA, we equally love all of our children!). They each have their attributes and, as the first figure shows, closely track each other (and, in fact, share most of their source data). The above chart is illustrative but may not reflect current values. The comparisons in the table above will vary over time as the relative weights of the components of the indexes change.<\/p>\n<\/p>\n

What is the Producer Price Index (PPI)?<\/h2>\n<\/p>\n
    \n
  1. \u00abSupply chains have healed and goods prices have cooled, but the Fed is laser-focused on services \u2013 rent, medical bills, insurance costs, etc.\u00bb<\/li>\n
  2. The comparisons in the table above will vary over time as the relative weights of the components of the indexes change.<\/li>\n
  3. While the CPI and PCE price index both provide measures of how prices are changing over time, they are not constructed in the same way.<\/li>\n
  4. Personal consumption expenditures, or PCE, allows economists, consumers, and businesses to see how well the economy is faring from month to month.<\/li>\n
  5. The PCE Price Index Excluding Food and Energy, also known as the core PCE price index, is released as part of the monthly Personal Income and Outlays report.<\/li>\n<\/ol>\n

    At the other end of the spectrum, the price index for used light trucks (up an annualized 45.7 percent) had the largest positive impact, contributing about 0.6 annualized percentage points to December\u2019s core rate. The price index for food as a whole was up 5.7 percent over the 12 months ending in December. The 12-month increase in the aggregate reflects a 9.8 percent rise in the prices of less-processed items and a 4.2 percent increase in the prices of more-processed items. Specifically, the BEA uses the Census Bureau\u2019s annual retail trade surveys, economic censuses, quarterly services reports and monthly retail trade surveys.<\/p>\n<\/p>\n