Categories > Prices > Consumer Price Indexes (CPI and PCE) {Ir Personal Consumption Expenditures Excluding Food and Energy (Chain-Type Price Index) (PCEPILFE) Observation: Units: Frequency: May 2022: 4.7 (+ more) Percent Change from Year Ago, Monthly 1Y I SY I IOY I Max EDIT GRAPH 0 Updated: Jun 30, 2022 Seasonally AdeStEd FRED\" Personal Consumption Expenditures Excluding Food and Energy (Chain-Type Price Index) 11 10 9 E: 8 'n's ;: 7 E g 6 El: l: 5 '5 .C u E 4 E in 3 D. 2 1 0 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Shaded areas indicate U.5. recessions. Source: U.S. Bureau of Economic Analysis fred.st|ouisfed.org :: share Links6' Account Tools 3 o 9 NOTES source: U.S. Bureau of Economic Analysis IZ', Release: Personal Income and Outlays |'_/', Units: Index 2012:100, Seasonally Adjusted Frequency: Monthly BEA Account Code: DPCCRG The Personal Consumption Expenditures Price Index is a measure of the prices that people living in the United States, or those buying on their behalf, pay for goods and services. The change in the PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior. For example, if car prices rise, car sales may decline while bicycle sales increase. The PCE Price Index is produced by the Bureau of Economic Analysis (BEA), which revises previously published PCE data to reflect updated information or new methodology, providing consistency across decades of data that's valuable for researchers. They also offer the series as a Chain-Type index and excluding food and energy products, as above. The PCE price index less food excluding food and energy is used primarily for macroeconomic analysis and forecasting future values of the PCE price index. The PCE Price Index is similar to the Bureau of Labor Statistics' consumer price index for urban consumers. The two indexes, which have their own purposes and uses, are constructed differently, resulting in different inflation rates. For more information on the PCE price index, see: U.S. Bureau of Economic Analysis, Guide to the National Income and Product Accounts of the United States (NIPA) 4. Go to the FRED economic database at https://fred.stlouisfed.org/ and click on Categories. Go to "Prices" and then "Consumer Price Indexes (CPI and PCE)". Click on the series "Personal Consumption Expenditures Excluding Food and Energy (Chain- Type Price Index)". Click on the "Edit Graph" button to the right of the graph and change the "Units" box to "Percent Change from Year Ago". This changes the index to a percentage value that can be interpreted as an annual rate of inflation. a. What is the purpose of removing food and energy prices from the PCE? What do we call that measure of inflation? b. Over the time range shown in the graph, in what two time periods did the US experience the highest rates of inflation? What were these rates (approximately)? c. What has been the trend in inflation since 1980? In general, had there been much movement in inflation between 2000 and 2020? What about since 2020