Consumer Price Index (CPI)

Despite the evident decrease from the 9.1% inflation spike in 2022, most consumers still feel the strain on their wallets. Research as of June 2023 indicates a staggering 61% of Americans are living paycheck to paycheck, with 21% finding it hard to meet their monthly bills. Even among the higher earners—those with incomes ranging from $50,000 to $100,000—65% are in the paycheck-to-paycheck boat. So, what exactly is going on? The Direction of Inflation Collin Crownover, PhD, a research analyst with Fidelity’s Asset Allocation Research Team, opines that the economic underpinnings…

Introduction The Federal Reserve (Fed) plays a vital role in shaping the United States’ monetary policy, and one of its primary objectives is to maintain price stability. To achieve this goal, the Fed closely monitors various economic indicators, with the Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI) being two of the most significant measures. In this article, we will explore the PCE and CPI indices, highlighting their differences and implications for investors. The Personal Consumption Expenditures (PCE) Index Overview The PCE index, published by the Bureau of Economic…