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68. Remix: What Is the PCE Index & Why Does It Matter to Us?
Manage episode 456636507 series 3478584
*This content was taken from Episode 35, which was originally recorded in May 2024, but has been edited to mainly focus on the important terms PCE, PPI & CPI to help put into context the new data we are seeing now in December 2024 and how it affects us as consumers, workers, and investors.*
—-----------------------------------------------------
Looking for unbiased, curated financial insights delivered straight to your inbox? Subscribe to the 1440 Business & Finance Newsletter, our trusted sponsor, and elevate your financial literacy—it's free and bi-weekly!
This ad is sponsored by 1440 Business and Finance.
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What Is PCE (Personal Consumption Expenditures)?
The PCE price index is considered The Fed’s preferred index. It’s kinda like how we use the S&P 500 indice to measure the stock market, but it’s a price index that measures specific goods and services and it’s regionalized. Basically, it's a guage on what Americans are spending and helps track inflation. It’s currently +2.8% YOY (October 2024), which is up from +2.7% in September 2024 - not what we want to see, we’d like to see it go down.
Resource: Updated Core PCE Link (excludes food and energy)
In Episode 15 we explained inflation and learned about PPI & CPI:
PPI: producer price index = is the perspective of the seller
CPI: consumer price index = is the perspective of the buyer
What is the difference between the CPI and the PCE Index?
The CPI measures the change in the out-of-pocket expenditures of all urban households and PCE measures the change in goods and services consumed by all households, and nonprofit institutions serving households.
Dot Plot (summary of economic projections from the FOMC)
----------------------------------------------------
🌟 Send a question, leave a review, subscribe, follow & share!
Market MakeHer website
Subscribe to our Newsletter
Email Us jessica@marketmakeherpodcast.com
Instagram @marketmakeherpodcast
TikTok @marketmakeher
X/Twitter @MarketMakeHer
Join the FB Community
👀 Watch us in action on our YouTube Channel 👀
✨ Follow Jess Inskip on TikTok and Instagram ✨
✨ Follow Jessie DeNuit on TikTok and Instagram ✨
**Beware of imposters! We will never message you and ask you for money directly.**
About Us 🌚🌞
Market MakeHer is an investing education podcast taught teacher-learner style by a 15-year finance expert, Jessica Inskip, to her very inquisitive beginner investor friend, Jessie DeNuit. We want to help you get better with your “finance-sis” (get it? No finance bros here). Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics - from "Her" perspective. You’ll also learn about free tools and resources on our podcast and we offer a ton of free educational content on our website so you can become fin-fluent.
Important Disclosures:
Market MakeHer Podcast provides financial literacy education. Tools and resources mentioned are for informational and educational purposes only. Remember, investing involves risk, and there's always a potential for losses when investing in securities. Market MakeHer LLC provides educational content and resources, but we are not registered financial advisors and do not provide personalized investment advice. Consult with a licensed financial advisor before making any investment decisions.
88 episodes
Manage episode 456636507 series 3478584
*This content was taken from Episode 35, which was originally recorded in May 2024, but has been edited to mainly focus on the important terms PCE, PPI & CPI to help put into context the new data we are seeing now in December 2024 and how it affects us as consumers, workers, and investors.*
—-----------------------------------------------------
Looking for unbiased, curated financial insights delivered straight to your inbox? Subscribe to the 1440 Business & Finance Newsletter, our trusted sponsor, and elevate your financial literacy—it's free and bi-weekly!
This ad is sponsored by 1440 Business and Finance.
—-----------------------------------------------------
What Is PCE (Personal Consumption Expenditures)?
The PCE price index is considered The Fed’s preferred index. It’s kinda like how we use the S&P 500 indice to measure the stock market, but it’s a price index that measures specific goods and services and it’s regionalized. Basically, it's a guage on what Americans are spending and helps track inflation. It’s currently +2.8% YOY (October 2024), which is up from +2.7% in September 2024 - not what we want to see, we’d like to see it go down.
Resource: Updated Core PCE Link (excludes food and energy)
In Episode 15 we explained inflation and learned about PPI & CPI:
PPI: producer price index = is the perspective of the seller
CPI: consumer price index = is the perspective of the buyer
What is the difference between the CPI and the PCE Index?
The CPI measures the change in the out-of-pocket expenditures of all urban households and PCE measures the change in goods and services consumed by all households, and nonprofit institutions serving households.
Dot Plot (summary of economic projections from the FOMC)
----------------------------------------------------
🌟 Send a question, leave a review, subscribe, follow & share!
Market MakeHer website
Subscribe to our Newsletter
Email Us jessica@marketmakeherpodcast.com
Instagram @marketmakeherpodcast
TikTok @marketmakeher
X/Twitter @MarketMakeHer
Join the FB Community
👀 Watch us in action on our YouTube Channel 👀
✨ Follow Jess Inskip on TikTok and Instagram ✨
✨ Follow Jessie DeNuit on TikTok and Instagram ✨
**Beware of imposters! We will never message you and ask you for money directly.**
About Us 🌚🌞
Market MakeHer is an investing education podcast taught teacher-learner style by a 15-year finance expert, Jessica Inskip, to her very inquisitive beginner investor friend, Jessie DeNuit. We want to help you get better with your “finance-sis” (get it? No finance bros here). Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics - from "Her" perspective. You’ll also learn about free tools and resources on our podcast and we offer a ton of free educational content on our website so you can become fin-fluent.
Important Disclosures:
Market MakeHer Podcast provides financial literacy education. Tools and resources mentioned are for informational and educational purposes only. Remember, investing involves risk, and there's always a potential for losses when investing in securities. Market MakeHer LLC provides educational content and resources, but we are not registered financial advisors and do not provide personalized investment advice. Consult with a licensed financial advisor before making any investment decisions.
88 episodes
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