If the consumer price index says that inflation equaled 10% last year, then the personal consumption expenditures price index is likely to say that inflation equaled 9.7% last year.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) and the Personal Consumption Expenditures Price Index (PCEPI) are both measures of inflation, but they often report slightly different numbers due to differences in their calculation methods, with the PCEPI often showing lower inflation rates than the CPI.

If the Consumer Price Index Says That Inflation Equaled 10