Something sure is sticky.
An excerpt of the BEA Personal Consumption Expenditures deflator measure from the post immediately below:
Personal Consumption Expenditures Price Index, Excluding Food and Energy
The PCE Price Index Excluding Food and Energy, also known as the core PCE price index, is released as part of the monthly Personal Income and Outlays report. The core index makes it easier to see the underlying inflation trend by excluding two categories – food and energy – where prices tend to swing up and down more dramatically and more often than other prices. The core PCE price index is closely watched by the Federal Reserve as it conducts monetary policy.
Quarterly and annual data are included in the GDP release.
Change From Month One Year Ago August 2022 4.9 % July 2022 4.7 % June 2022 5.0 % May 2022 4.9 %
May to August rate of increase being UNCH brings to mind a quote from Warren Buffett.*
And from Mike Shedlock at MishTalk, September 28 [quick note, for our purposes the biggest difference between PCE and CPI is that PCE weights shelter at half the weight that CPI does]:
What's the role of tight labor markets on core inflation and overall inflation?
CPI components as of August 2022. Chart by Mish.
Core CPI is defined as everything but food and energy. Here's the set of claims I am investigating....
December 31, 1964: DJIA 874.12
December 31, 1981: DJIA 875.00
“Now I’m known as a long-term investor and a patient guy, but that is not my idea of a big move.”
-Warren Buffett
The original was in this 1999 Fortune article "Mr. Buffett on the Stock Market"
