Personal consumption expenditures refer to the measure of price changes in consumer goods and services. Personal consumer expenditures consist of the imputed and actual expenditures of families; this data is the basis for forecasting inflation. The calculation also consists of information pertaining to services, durables and non-durables. In essence, the personal consumption expenditure model is an all-inclusive measure of goods and services consumed by individuals and families.Know More
The personal consumption expenditure calculation is similar to consumer price index. In fact, both measurable are a part of the personal income report put out by the Department of Commerce. Although similar in a number of respects, the Consumer Price Index and the personal consumption expenditure calculation share several key differences. For instance, personal consumption expenditures utilize a chain index, which evaluates consumers’ altering consumption habits as a result of price fluctuation, whereas the CPI utilizes a fixed basket of goods with weightings that do not fluctuate over time.
Personal consumption expenditures are somewhat predictable and have little to no impact on the domestic markets. The calculation serves more as a benchmark to better understand the level of consumption within the GDP. Additionally, personal consumption expenditure models, along with the CPI, are effective at measuring inflation.Learn more about Financial Planning
To find the rate of inflation over any period of time, consult the consumer price index maintained by the Bureau of Labor Statistics, explains InflationData.com. By gathering data from all U.S cities, this index measures average price increases for all types of merchandise aside from food and energy, reports the U.S. Department of Labor. In the first six months of 2015, the U.S inflation rate ranged from 1.6 to 1.8 percent.Full Answer >
One of the biggest consumer credit counseling services is the National Foundation for Credit Counseling, according to Springboard Nonprofit Consumer Credit Management. American Consumer Credit Counseling is another large credit counseling organization.Full Answer >
Businesses provide goods and services that drive economic output, according to About.com. The law of supply and demand dictates that companies can step in and begin producing products if an economy is not able to produce high-demand goods to satisfy the public.Full Answer >
An expense tracker spreadsheet is a tool that enables individuals and businesses to see how much they spend each month on specific categories of goods and services and to compare those amounts against their budgets, notes Vertx42. This type of spreadsheet is also a helpful tool for project planning since it can help show if a project will go out of budget.Full Answer >