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CPI, PCE, ECI, and Wage Inflation...Oh My!

IBKR Podcasts

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The Importance of the Employment Cost Index

ECI is a broader measure of labor cost, it takes into account things like benefits and bonuses that average hourly earnings wouldn't capture. ECI isn't explicitly part of PCE, but since wages play a role in many parts of inflation, it measures some of the same things as PCE. And there was a recent study from the San Francisco Federal Reserve that showed surprise changes in the EC.

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