Quote:
Originally Posted by CoachKandSportsguy
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.
|
1. Your thumbnail didn't show up for me so no idea what it is.
2. I haven't ever seen PCE until this post so it'll take me a couple weeks to learn what it means, its significance, and what various "people who get paid to know this stuff" have to say about it.
3. I don't know what a Chain-Type index is.
4. I don't know what DPCERG is. Sounds like the model number of a sci-fi fantasy movie robot. "Oi Dipkerg, over here!" "Bleep bloop blip bleep."
5. I'm really not interested enough in finances to bother learning. Y'know, learning the same way real students learn about accounting and finances when they're in actual school taking actual classes. Not just googling a few websites.
I saw a thing about the inflation rate dropping significantly since last year, which was pretty bad last year. And now it's more in line with the "usual" rate of inflation, historically. Not quite there yet but pretty close. I expect inflation to always exist. When we have zero inflation, it's a happy surprise for a short time - but it invariably goes back up again. The fact that it's 3% instead of 9% is a great thing. People should be happy about that, and hopeful that we can continue the trend and get it closer to 0.
As for who can afford what (the true impact of inflation): I just got my first Social Security check 2 days ago. I can afford everything I want now. The past couple of years has required a somewhat tight budget - not frugal, but not easy-going either. And now, I can afford to set aside some savings for a new (used) car next year, without having to give up dinner and drinks out at the country club every couple of months.