PCE Inflation vs CPI Inflation

A comparison of the trends in PCE vs CPI inflation meausures for the US, based on Fred data.

• PCE Inflation is published by U.S. Bureau of Economic Analysis is based on implied prices and weights by surveying businesses selling to consumers. It uses a Fisher index to construct updates for each period.

• CPI Inflation is published by U.S. Bureau of Labor Statistics and is based on a survey of prices for a representative basket of goods and services and weighted by a direct survey consumer expenditure. It uses a Laspeyres index to construct updates for each period.

For detailed discussion of differences see the BLS.