Core PCE Price Index
a.k.a. Core PCE
A US inflation measure based on what consumers spend on, excluding food and energy. The Fed watches it closely.
PCE stands for personal consumption expenditures. The PCE price index measures inflation across what households spend money on, including things paid for on their behalf, like employer-provided health care. The core version leaves out volatile food and energy.
The Federal Reserve defines its 2% inflation target using PCE, and it pays particular attention to core PCE to see the underlying trend. It usually comes out after CPI, so it often confirms what markets already suspect.
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