Inflation fears are out of fashion within the investor community. They’re far more interested in recession spotting and next year’s presidential election.
After all, the core Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred measure of inflation, has declined steadily over the past 12 months. “Core” simply means that food and energy prices are stripped out of the index because they tend to be volatile in the short term and can be driven by environmental issues or geopolitics.
