.HEADLINES ABOUT inflation in America typically describe the nation's consumer-price index (CPI), one of the most widely made use of solution of changing rates. CPI rising cost of living decreased in August to 2.5% year-on-year. Yet when America's main banks satisfy on September 17th to discuss reducing rates of interest, they will certainly concentrate on a various index. Considering that 2000 the Federal Reserve has used the personal-consumption-expenditures (PCE) price index, somewhat the than CPI, as its own recommended measure of rising cost of living. It protests this that the Fed's target for inflation, 2%, is matched up. What are actually the differences between the actions-- and why performs the Fed utilize the PCE?