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explain in words why the PCE deflator inflation estimates will be lower than estimate will be...

explain in words why the PCE deflator inflation estimates will be lower than estimate will be lower than estimates of inflation using the CPI
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CPI or control price index is set up by Bureau of Labour Statistics and seen to be higher than the PCE deflator because of the following reasons. First of all since the CPI is a price index which was given shape initially by measuring fixed basket of goods and services within a period of time and is unable or stays insensitive to records outside the basket. Thus it being a fixed weight price index it won't be very successful in forecasting the increase in prices in the consumer budget. Whereas the PCE changes from one year to another showing what consumers are purchasing in a given year.

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