PCE vs CPI: Which Inflation Number the Fed Actually Watches
The Fed targets PCE, not CPI. Here is what each measures, why they diverge, and what the July 2026 readings tell you before Jackson Hole.
core pce inflation
CPI vs Core CPI vs PCE: How the Fed’s Inflation Gauges Differ
Why the Fed targets PCE inflation at 2%, how CPI and PCE differ in formula, scope, and weights, and what June 2026’s readings actually show.