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Load and Process Personal Consumption Expenditures (PCE) Inflation Data

Source: R/getPCEInflation.R
getPCEInflation.Rd

Downloads and processes BEA NIPA data to compute Personal Consumption Expenditures (PCE) price indices with weights and growth measures. This is the Federal Reserve's preferred inflation measure.

Usage

getPCEInflation(frequency = "M", NIPA_data = NULL)

Arguments

frequency

Character string indicating the frequency of the data: "M" (monthly, the default) or "Q" (quarterly). Also sets the compounding used to annualize WDataValue_P1a (12 for monthly, 4 for quarterly).

NIPA_data

Optional data frame. If provided, it will be used as the raw NIPA dataset instead of loading fresh data with getNIPAFiles(). Make sure frequency matches the frequency of the supplied data, since it determines the annualization exponent.

Value

A tibble with one row per (date, PCE component), containing the columns from getNIPAFiles for price-index table "U20404" (including date, SeriesLabel, and the price index in Value), plus:

PCEweight

Nominal consumption share: component spending divided by total PCE (both from table "U20405").

quantity

Real quantity index from table "U20403".

DataValue_P1

1-period percent change in the price index (decimal).

DataValue_P3

3-period percent change (decimal).

DataValue_P6

6-period percent change (decimal).

WDataValue_P1

Contribution to 1-period PCE inflation: DataValue_P1 times the lagged PCEweight.

WDataValue_P1a

WDataValue_P1 annualized by compounding over the periods per year implied by frequency: (1 + x)^12 - 1 for monthly, (1 + x)^4 - 1 for quarterly.

Details

The function performs the following steps:

  1. Loads NIPA data using getNIPAFiles (or uses pre-loaded data).

  2. Extracts total PCE from table "U20405" (series code "DPCERC").

  3. Computes PCE component weights as the nominal consumption share (component value divided by total PCE).

  4. Extracts quantity indices from table "U20403".

  5. Loads price indices from table "U20404", joins weights and quantities, and calculates period-over-period growth measures.

Examples

if (FALSE) { # \dontrun{
  # Load monthly PCE data
  pce_data <- getPCEInflation("M")
} # }