the CPI, the total CPI consumer price index. There’s the total CPI, And there’s also the core CPI which strips out food and energy prices from the total and then just looks at what’s leftover and that’s called the core. And so the Fed pays a lot of attention to that because food and energy price movements are considered often seasonal, transitory, and not directly affected by that policy. So sometimes it’s better to just look at the core measure. There’s another price index. There are hundreds of price indexes, but the other one the bet pays attention to is the personal consumption expenditure price index. Y equals C plus I plus G plus net exports. C is consumption or, as the national income accounts call it personal consumption expenditures. And there’s a price index associated with that. And it differs a little bit from the CPI in, in terms of how it measures things. In particular, how measures health care inflation. And the Fed internally kinda likes that personal consumption expenditure price index more than the CPI. we’d have the CPI total, the CPI Core, the personal consumption expenditure price index total, and the Core version of that.
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