Part 5/14:
Inflation Measurement and Personal Experiences
Participants debated the integrity of inflation metrics such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) index. The complexities of measuring inflation were highlighted, including the use of core PCE that excludes volatile items like energy and food. Skepticism was expressed about whether these official figures accurately reflect personal experiences, as individual households report substantial price increases in essentials like childcare, healthcare, and education—costs that often outpace official indicators.