Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
The PCE Index Gap Why Inflation Feels Different Than CPI
The April 2026 core PCE reading came in at 3.3% annualised — matching expectations, but still above the Fed's target. Lucas and Luna unpack why the PCE index, which the Fed prefers over CPI, paints a different picture of inflation than the headline numbers consumers feel at the register. They examine the weights of housing, healthcare, and energy in each index, and explain why the gap between PCE and CPI matters for rate policy. Plus: how the 'double scar' of past inflation and geopolitical shocks is keeping consumer sentiment muted even as official numbers moderate.
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The skinny
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