Samantha Fields

Collecting data for the Consumer Price Index is pretty straightforward, if time-consuming.

Collecting data for the Consumer Price Index is pretty straightforward, if time-consuming.

Economists go to stores, make phone calls, and scour the web to check prices on thousands of items and services.

Economists go to stores, make phone calls, and scour the web to check prices on thousands of items and services.

Bill English at Yale School of Management says that's because it's not just looking at the prices consumers pay.

Bill English at Yale School of Management says that's because it's not just looking at the prices consumers pay.

And getting that data from companies in the government can take a little while.

And getting that data from companies in the government can take a little while.

PCE also includes price data from CPI, so it's just inevitably going to come out later.

PCE also includes price data from CPI, so it's just inevitably going to come out later.

We get this lag, but we also get this quality, right?

We get this lag, but we also get this quality, right?

CPI is faster.

CPI is faster.

PCE is more comprehensive.

PCE is more comprehensive.

Carola Binder at the University of Texas at Austin says having both, along with private data, is helpful.

Carola Binder at the University of Texas at Austin says having both, along with private data, is helpful.

Getting a good idea of what inflation is doing in real time is particularly important in volatile moments like now, with a war and oil prices rising.

Getting a good idea of what inflation is doing in real time is particularly important in volatile moments like now, with a war and oil prices rising.