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.
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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.
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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.
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Now we know.
According to Wikipedia:
ReplyDeleteIn 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:
https://www.federalreserve.gov/boarddocs/hh/2000/February/FullReport.htm