Natalia Calcagno jKt7

*What is the PCE Deflator — and why does it matter?*

The PCE (*Personal Consumption Expenditures*) deflator measures how prices for goods and services change over time, helping policymakers understand inflation and make smarter economic decisions.

It’s often preferred over other inflation metrics because:
✅ It adjusts for changing consumer spending habits
✅ It covers a broad range of goods and services
✅ It gives a clearer picture for setting monetary policy

*Here’s how to read it:*
100 = Prices haven’t changed from the base year

Above 100 = Inflation (prices have gone up)

Below 100 = Deflation (prices have gone down)

*Why it matters for crypto:*
Rising inflation can drive more interest in assets like crypto, while lower inflation might push investors back toward traditional currencies.

📊 Want to learn how the PCE deflator is calculated and how it connects to markets?