by Myles Udland
Yahoo! Finance
The Federal Reserve’s inflation story is all about housing.
Right now, the gap between the Fed’s preferred inflation measure and the most popular inflation measure is a full percentage point. But how the two series account for the cost of shelter yields a 1.5 percentage point gap between them — a difference that’s offset by other components to its current gap at the bottom of the ledger.
In a new report out Monday, the economics team at Wells Fargo led by Sarah House and Aubrey George explored the gap between two closely watched measures of inflation — core CPI and core PCE.