The Inflation Storm: Economic Challenges and Political Stakes in 2024

Inflation is always a hot-button issue, particularly in an election year when its impacts on daily life and the economy are front and center. Despite the politicization of inflation, understanding its cost typically requires examining key economic indicators: the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE). The CPI measures the change in expenses paid by consumers for a basket of goods and services, while the PCE tracks changes in the consumption patterns of households. Both metrics aim to capture the inflationary landscape, but greatly differ in scope. These...