Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Peter Westfall is a distinguished professor of information ...

Because the PCE and CPI differ in their formula, weighting, scope and other effects, their results are different. The Federal Reserve prefers to use the PCE price index to measure inflation.

In this article, you will learn about how the CPI is put together, the different types of CPIs and the part it plays in investing trends and monetary policy. What Is The Consumer Price Index (CPI)?

See how cost of living indexes provide info on essential costs associated with different areas of the U.S., plus the Social Security Administration's COLA for 2025.

The Social Security Administration's website reveals how a specific measure of CPI can impact these adjustments. "According to the formula, COLAs are based on increases in the Consumer Price Index ...