.HEADLINES ABOUT rising cost of living in The United States typically pertain to the nation's consumer-price index (CPI), one of the most commonly used measure of altering costs. CPI inflation decreased in August to 2.5% year-on-year. But when America's core banks satisfy on September 17th to cover reducing interest rates, they are going to pay attention to a different index. Considering that 2000 the Federal Reserve has used the personal-consumption-expenditures (PCE) price index, rather the than CPI, as its popular measure of rising cost of living. It is against this that the Fed's target for rising cost of living, 2%, is actually contrasted. What are the variations between the solutions-- as well as why performs the Fed use the PCE?