[CoachKandSportsguy]

Originally Posted by OrangeBlossomBaby

Inflation was as high as 9.1% nationwide a year ago. We were still recovering from global shut-downs post-pandemic, restoring jobs lost, getting manufacturers back on track, and a bunch of other stuff that's political so I won't detail it here but - politics certainly played some part.

The good news, is that the inflation rate has been in decline for the past 12 months, consecutively, and hit 3% as of the end of June.

But here is the PCE, which is more of what we buy, and is what the Fed, J Pow and the board look at to make interest rate decisions. Note that it isn't quite as low as the CPI with all the other crap thrown in, like owners equivalent rent. . . the rate is about 5% on a year over year basis. The sh!tty feeling about inflation is that income changes about once a year, and lags these changes so it messes with fixed budgets in the worst way

Source: U.S. Bureau of Economic Analysis Release: Personal Income and Outlays
Units: Index 2012=100, Seasonally Adjusted

Frequency: Monthly

BEA Account Code: DPCERG

The Personal Consumption Expenditures Price Index is a measure of the prices that people living in the United States, or those buying on their behalf, pay for goods and services. The change in the PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior. For example, if the price of beef rises, shoppers may buy less beef and more chicken.

The PCE Price Index is produced by the Bureau of Economic Analysis (BEA), which revises previously published PCE data to reflect updated information or new methodology, providing consistency across decades of data that's valuable for researchers. They also offer the series as a Chain-Type index, as above. The PCE price index is used primarily for macroeconomic analysis and forecasting.

The PCE Price index is the Federal Reserve’s preferred measure of inflation. The PCE Price Index is similar to the Bureau of Labor Statistics' consumer price index for urban consumers. The two indexes, which have their own purposes and uses, are constructed differently, resulting in different inflation rates.