Daily Econ

Economics Basics

Essential concepts and mechanisms for understanding the economy.

Economics Basics6 min read

Why the Economy Should Be Read as a Flow, Not Just as Numbers

Viewing an economic indicator as a single number can easily create a misleading impression. Learn how to read the economy’s underlying flow by examining the direction and speed of quarter-over-quarter and month-over-month changes, the limits of annualized rates, seasonal adjustment, and the possibility of data revisions.

  • Economics Basics
  • Seasonal Adjustment
  • Economic Indicators
  • Annualized Rates
  • Economic Growth Rates
Economics Basics5 min read

How PCE and Core PCE Differ: How the Fed Reads Inflation

We examine the measurement scope and calculation methodology of PCE and core PCE, as well as their differences from the consumer price index (CPI). We also explain why the U.S. Federal Reserve targets 2% headline PCE while using core PCE to track underlying inflation trends.

  • PCE
  • Core PCE
  • Federal Reserve
  • consumer price index (CPI)
  • monetary policy
Economics Basics4 min read

CPI vs. PPI: The Simplest Way to Read Inflation News

CPI reflects the prices consumers actually experience, while PPI tracks prices at the production stage for businesses. Understanding the difference makes inflation news and interest-rate outlooks much easier to read.

  • CPI
  • Price Indicators
  • Interest Rates
  • Inflation
  • PPI