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Stories: PCE

Diagram comparing the CPI and the PCE price index across formula, weight, scope and other effects, with PCE marked as the measure for the FOMC's 2% goal
PCE ·

PCE vs CPI: Why the Fed Targets a Different Inflation Gauge

Formula, weights and scope explain why PCE inflation usually runs below CPI, and why the Fed's 2% goal uses PCE.

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