Why Core PCE Is Stubborn While CPI Falls

In episode 138, Lucas and Luna unpack a puzzling disconnect in the latest economic data: the Consumer Price Index dropped to 332.6 in June, but the Federal Reserve's preferred gauge, core PCE, continued to edge higher. With real GDP growth accelerating to 2.1% and the labor market still tight at 187,000 jobless claims, they explore why inflation isn't falling uniformly. They break down the compositional differences between CPI and PCE, the role of rising import costs, and what this means for the Fed's next move. Whether you're a macro watcher or just trying to understand why your grocery bill feels different from the headlines, this episode offers a clear, data-driven look at the paradox of cooling consumer prices versus persistent underlying inflation. #CorePCE #CPI #FedPolicy #Inflation #EconomicIndicators #GDPGrowth #JoblessClaims #LaborMarket #ImportPrices #MacroData #Economics #CentralBank #FOMC #ConsumerPrices #ProducerCosts #MarketVolatility #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo