Inflation Is Already Here — For the Stuff You Actually Want to Buy
Economists will be relieved that the laws of supply and demand are still working, at a time when so much in the discipline is in doubt.
The swings in our buying habits have accentuated the difference between the consumer-price index (CPI) and the personal-consumption-expenditures price index (PCE).
CPI captures the headlines and determines the return on inflation-linked Treasurys, or TIPS.
The Federal Reserve uses PCE—and the two diverged over the summer.
WSJ 26 September 2020
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