A year ago, a month ago -- Same difference? No.

CPI and PCE -- Same difference? Yes.

Download as PDF

The first graph shows CPI, the well-known measure of inflation.
The second graph shows PCE, the inflation measure preferred by the Fed.
(Both graphs show the same difference: Blue is high, Red is low.)

The blue line shows the change in prices from a year ago.
The red line shows the change in prices from a month ago.
(Both are figured every month.)

Note: Blue and Red are the default colors,  not a political statement.

CPI Inflation since June 2019:

Graph #1: https://fred.stlouisfed.org/graph/?g=ICPC

 

 

PCE Inflation since June 2019:

Graph #2: https://fred.stlouisfed.org/graph/?g=ICPF

 

 

 

The change in prices a year ago was important a year ago.
What's important now is the change in prices now.