.HEADINGS ABOUT rising cost of living in The United States generally describe the country's consumer-price index (CPI), the best commonly utilized solution of transforming rates. CPI rising cost of living reduced in August to 2.5% year-on-year. But when America's main lenders satisfy on September 17th to discuss cutting rates of interest, they will certainly focus on a various mark. Due to the fact that 2000 the Federal Reserve has made use of the personal-consumption-expenditures (PCE) price index, instead the than CPI, as its own preferred step of inflation. It is against this that the Fed's aim at for rising cost of living, 2%, is actually compared. What are the differences between the measures-- and why does the Fed use the PCE?