That means rising gas prices have a bigger impact on the overall index than cheaper tomatoes. Gasoline represents a larger portion of a family’s monthly budget, so it’s weighted more heavily in calculating PCE. Say the price of gasoline rises in a given month but the price of tomatoes falls. ![]() It tracks the prices of a basket of goods and services, each with different weightings, to reflect how much a typical household spends every month. inflation by measuring changes in the cost of living for households. When you measure these price changes across an entire economy, that’s the rate of inflation. Prices for goods and services change constantly, rising and falling as companies and consumers react to trends in the economy. The Bureau of Economic Analysis (BEA) publishes the PCE price index each month to track spending and inflation. ![]() The personal consumption expenditures price index, commonly known as the PCE price index, is one of the main measures of inflation and consumer spending in the U.S.
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