By Staff Reporters
Sponsor: http://www.MarcinkoAssociates.com
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PCE or the Personal Consumption Expenditures (“PCE”) price deflator—comes from the Bureau of Economic Analysis’ quarterly report on U.S. gross domestic product—and is based on a survey of businesses and is intended to capture the price changes in all final goods, no matter the purchaser.
Because of its broader scope and certain differences in the methodology used to calculate the PCE price index, the Federal Reserve (“the Fed”) holds the PCE deflator as its preferred, consistent measure of inflation over time.
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