Wednesday, March 22, 2017

When did the Federal Reserve switch from CPI to PCE?

PCE and CPI Inflation: What’s the Difference? at the Federal Reserve Bank of Cleveland:

The Federal Reserve, however, states its goal for inflation in terms of the PCE.


Two Measures of Inflation and Fed Policy by Jill Mislinski:

The Fed is on record as using Core PCE data for its primary inflation gauge.


I say CPI, you say PCE by Phil Davies. At the Federal Reserve Bank of Minneapolis:

The Fed switched from the CPI to the PCE in 2000.


Now we know.

1 comment:

The Arthurian said...

According to Wikipedia:

In its "Monetary Policy Report to the Congress" ("Humphrey-Hawkins Report") from February 17, 2000 the FOMC said it was changing its primary measure of inflation from the consumer price index to the "chain-type price index for personal consumption expenditures".

The link: