Inflation 101: here's what it means and how it is calculated

The video explains inflation, describing it as the increase in the cost of living, which makes the dollar feel weaker. It highlights that some inflation is beneficial, targeting around 2% for economic stability. Inflation is measured using three metrics: the Personal Consumption Expenditures Price Index (PCE), the Consumer Price Index (CPI), and the Producer Price Index (PPI). Each metric provides insights into different aspects of price changes. The video concludes by emphasizing that inflation means higher prices without an increase in wealth.

How does the Personal Consumption Expenditures Price Index (PCE) differ from the Consumer Price Index (CPI)?

What does the Producer Price Index (PPI) indicate about inflation?