How to Trade Economic Data 02: Inflation, CPI, PPI and PCE

Traders react to CPI first, then use PPI to estimate core PCE, the gauge the Fed actually targets.

By Dorian

The Fed announces its next decision on October 28. September PCE, the inflation gauge the Fed targets, comes out on October 29.

So the Fed votes one day before its own preferred number is published.

How does anyone know what September core PCE looks like before BEA prints it? Traders build the entire scenario maps around these figures.

So the nu…