| BUSINESSWEEK ONLINE : JULY 12, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR
Inflation Gauges CONSUMER PRICE INDEX: MONTHLY Measures what consumers pay for all goods and services. Includes most taxes and imports. Since the CPI measures a set basket of items, it doesn't allow for substitution. PERSONAL CONSUMPTION EXPENDITURE DEFLATOR: MONTHLY Federal Reserve Chairman Alan Greenspan favors the PCE deflator over the CPI. That's partly because it registers the substitution of a cheaper good for one with a price hike--say, if you bought cheaper chicken in place of pricier beef. PRODUCER PRICE INDEX: MONTHLY Captures swings in prices that U.S. producers are actually charging their customers. Doesn't include many services, imports, or taxes. EMPLOYMENT COST INDEX QUARTERLY Measures changes in wages, salaries, and benefits paid by businesses. It tells the markets if businesses are getting squeezed by higher labor costs, which are bad for profits. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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