Why CPI and PCE Are Sending Different Inflation Signals

In this episode of Economic Indicators, Lucas and Luna dive into a puzzle plaguing markets in mid-2026: the CPI is falling, but the PCE price index is still climbing. With the Fed watching Core PCE closely, the hosts break down why the two inflation gauges are diverging, what it means for interest rates, and how the breakeven inflation rate adds another layer. They reference the latest data—CPI at 332.6, Core PCE inching up to 130.1, and the 10-year breakeven slipping to 2.21%—and connect it to the surprise Singapore tightening and the global inflation backdrop. A concise, data-driven look at why the Fed might stay cautious even as headline inflation cools. #CPI #PCE #CorePCE #Inflation #BreakevenInflation #FederalReserve #InterestRates #MonetaryPolicy #SingaporeMonetaryPolicy #GlobalInflation #EconomicIndicators #FexingoBusiness #BusinessPodcast #Podcast #Economics #DataDriven #Macro #July2026 Keep every episode free: buymeacoffee.com/fexingo