Housing Costs Drive a Wedge Between Fed’s and Popular Inflation Metrics The discrepancy between the Federal Reserve’s favored inflation metric, the Core Personal Consumption Expenditures (PCE) index, and the more commonly followed Consumer Price Index (CPI) has reached one percentage point difference, largely due to divergent approaches in calculating housing costs. This gap widens to 1.5 percentage points when focusing solely on shelter expenses, although this is partially balanced out by other factors. A recent analysis by Wells Fargo’s economists, Sarah House and Aubrey George, delves into these variances, highlighting the significant impact of how shelter costs are factored into these crucial economic indicators. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Gold Consolidates After Record High Amid Rate Cut Speculations READ MORE Citi Analysts Eye $3,000 Mark for Gold READ MORE Election Jitters Keep Metals Market in Check, Says Citigroup READ MORE Oil Prices Stagnate as Demand Worries Mount READ MORE Yahoo Finance Chartbook: 10 Charts That Show the Economic Forces Staving Off Recession READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment