The “Personal Consumption Expenditures” (PCE) Price Index

September 27, 2024

Excludes personal consumption expenditures on food and gas.  The Fed calls it a “key” price index and its preferred measure of the cost of living nevertheless.  Since it excludes food and energy, I assume it only tracks the expenditures of people living off the grid and growing their own food and hunting squirrels and rabbits for protein.

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Dr. Thomas DiLorenzo [send him mail] is a former professor of economics at Loyola University Maryland and a longtime member of the senior faculty of the Mises Institute. He is the author or co-author of eighteen books including The Real LincolnHow Capitalism Saved AmericaLincoln UnmaskedHamilton's CurseOrganized Crime: The Unvarnished Truth About GovernmentThe Problem with Socialism; and The Politically-Incorrect Guide to Economics