Episode
Why the Core PCE Tells a Different Inflation Story Than CPI
- Published
- Jul 9, 2026
- Duration seconds
- 418
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Summary
On this episode of Economic Indicators with Fexingo, Lucas and Luna dig into a key tension in today's macro data: CPI is running at 4.3% annualized over the past three months, but the Fed's preferred gauge — core PCE — is hovering just above 2.5%. They explain the structural differences between the two measures (CPI weights housing more heavily; PCE accounts for substitution effects), and walk through what the May 2026 data tells us about where inflation really stands. They also connect the dot to the bond market: the 10-year breakeven rate at 2.25% suggests traders trust the PCE story more than the CPI scare. A focused, number-driven conversation for anyone trying to read through the headline noise. #CorePCE #CPI #Inflation #FederalReserve #BondMarket #BreakevenRate #EconomicIndicators #May2026Data #SubstitutionEffect #HousingCosts #MonetaryPolicy #RealRates #FexingoBusiness #EconomicsPodcast #BusinessPodcast #MacroData #PriceIndex #ConsumerSpending Keep every episode free: buymeacoffee.com/fexingo