.HEADINGS concerning inflation in The United States normally describe the country's consumer-price mark (CPI), the most largely used action of changing prices. CPI inflation decreased in August to 2.5% year-on-year. Yet when America's central lenders meet on September 17th to explain cutting interest rates, they will definitely focus on a different index. Because 2000 the Federal Reserve has used the personal-consumption-expenditures (PCE) price index, instead the than CPI, as its own preferred solution of inflation. It is against this that the Fed's target for inflation, 2%, is actually reviewed. What are actually the differences between the actions-- and why does the Fed use the PCE?