Inflation is synonymous with the consumer price index, which comes out less than two weeks after the end of each month. But there’s more than one way to measure inflation, and CPI is not the Federal Reserve‘s favorite one. When Fed Chair Jerome Powell says “My colleagues and I are strongly committed to bringing inflation back down to our 2% goal,” he means personal consumption expenditures price index, which is running roughly two percentage points lower than the consumer price index this year. What’s the difference between PCE and CPI? There are three main differences between these two inflation measures.…