Don't understand why you treat this a sectoral phenomenon (these prices are up a lot, those not so much). Inflation is economy-wide. It's about NGDP. In any inflationary phase, some sectors will be up more than others. That doesn't matter. What matters is the big picture. If demand is under control, inflation will moderate, still varying across sectors. At least mention the big picture.....
PCE is not a component of NGDP. It is the Fed's favorite measure of inflation. Used cars, food, services,....Those are all distractions that make people think "if only we fixed food, we'd be OK". The focus needs to be on NGDP (or NGDI, or....) That's how we know whether we're on track or not. We're not.
The Personal Consumption Expenditures Price Index is the Fed's Inflation Target, but Personal Consumption Expenditures is just the sum of all nominal consumer spending in the economy and makes up about 70% of NGDP.
Don't understand why you treat this a sectoral phenomenon (these prices are up a lot, those not so much). Inflation is economy-wide. It's about NGDP. In any inflationary phase, some sectors will be up more than others. That doesn't matter. What matters is the big picture. If demand is under control, inflation will moderate, still varying across sectors. At least mention the big picture.....
PCE is the biggest component of NGDP, and wages are a big driver of PCE! That was me mentioning the big picture.
PCE is not a component of NGDP. It is the Fed's favorite measure of inflation. Used cars, food, services,....Those are all distractions that make people think "if only we fixed food, we'd be OK". The focus needs to be on NGDP (or NGDI, or....) That's how we know whether we're on track or not. We're not.
The Personal Consumption Expenditures Price Index is the Fed's Inflation Target, but Personal Consumption Expenditures is just the sum of all nominal consumer spending in the economy and makes up about 70% of NGDP.
https://fred.stlouisfed.org/graph/?g=XDZo
Not sure where you're going.