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The difference between CPI and PCE seemed relatively insignificant. However, a big issue is the difference between CPI and Core CPI. CPI is the consumer price index. A measure of the cost of living for the typical person. Core CPI is the CPI â energy and food prices.
The CPI or a user defined index relates to standard percent escalation. The CPI measures the general increase in consumer prices (inflation) at the city, state, regional, and national levels. For example, suppose that the index for January, 2017 is 169.24 and the index for January, 2018 is 178.38.