InflationBureau of Economic AnalysisMonthly

Personal Consumption Expenditures Price Index

What is Personal Consumption Expenditures Price Index?

The Fed's preferred inflation measure, broader than CPI with dynamic weighting.

Why it matters

This is the inflation gauge the Fed explicitly targets at 2%.

How to read prints

When it rises

The Fed preferred inflation gauge is running hotter; supports tighter policy.

When it falls

PCE is easing toward target; supports rate cuts.

Frequently asked

What is PCE inflation?
The Personal Consumption Expenditures Price Index measures inflation across all consumer spending, including healthcare paid by insurance. It is the Fed preferred inflation gauge.
Why does the Fed target 2% PCE?
The Fed dual mandate uses PCE because it captures substitution effects and a broader basket than CPI. The 2% target is on headline PCE year over year.
What is Core PCE?
Core PCE excludes food and energy. Fed officials watch the 3-month and 6-month annualized core PCE rate for signs of stickiness.
When is PCE released?
Monthly, about four weeks after the corresponding CPI, as part of the Personal Income and Outlays report.

Track it on Market Ontology

Monitor Personal Consumption Expenditures Price Index in real time on Inflation System, alongside regime classification, transmission mapping, and cross-asset context.

SourceBureau of Economic Analysis
FrequencyMonthly
CategoryInflation
FRED SeriesPCEPI
Unit%
Related ModuleInflation System

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