Economy

The CPI and PCE don't include house prices, on the idea that it's an investment, not a consumption item. The CPI and PCE DOES include rent and "Owner's Equivalent of Rent" where they ask homeowners what they think they could rent their house for. But that's it. Home insurance that has been soaring like crazy, and not just in California and Florida? (our Twin Cities' 60 townhome complex's insurance more than tripled over the last 4 years). Not in the CPI nor PCE. Higher mortgage payments caused by higher home prices and higher mortgage rates in a toxic combination? Not in the CPI nor PCE. Higher property taxes driven by higher home prices? Ditto.

Higher financing costs on auto loans and credit cards? Ditto.

So CPI-land and PCE-land don't match the situation out there for most people.

The CPI is the Consumer Price Index https://www.bls.gov/news.release/cpi.nr0.htm

The PCE is the Personal Consumption Expenditures price index, the Fed's favorite inflation gauge bea.gov
Latest (Dec'2024): https://www.bea.gov/news/2025/personal-income-and-outlays-december-2024