Observe (attached line chart) how the CPI line consistently tracks higher than PCE over multi-decade periods due to its heavy weighting on out-of-pocket shelter expenses.
Watch how the PCE line slopes beneath the CPI line, demonstrating the mathematical deflationary pull of the Federal Reserve’s preferred substitution methodology. Examine the Truflation baseline starting in 2021 to see how digital scraping captures sudden supply shocks and price corrections long before they register on lagging government surveys.
I’m actually starting to learn some of this stuff! Yay!
Thanks for the worksheet, mate, but I'm going fishing for a mess of those 10" bluegills to help with the grocery bill.
Observe (attached line chart) how the CPI line consistently tracks higher than PCE over multi-decade periods due to its heavy weighting on out-of-pocket shelter expenses.
Watch how the PCE line slopes beneath the CPI line, demonstrating the mathematical deflationary pull of the Federal Reserve’s preferred substitution methodology. Examine the Truflation baseline starting in 2021 to see how digital scraping captures sudden supply shocks and price corrections long before they register on lagging government surveys.
Inflation Chart 2001-Present (CPI, PCE, Truflation)
https://share.icloud.com/photos/09bCFBrVgCYW8ncU39zTlNqhQ