PCE Price Index
a.k.a. PCE inflation, Personal Consumption Expenditures Price Index
The US Federal Reserve's preferred measure of inflation, based on what people actually spend money on.
The PCE price index tracks how prices change across everything Americans spend on, from rent and groceries to healthcare paid on their behalf. It is the inflation measure the Fed officially targets at 2%.
It differs from the better-known CPI: it covers a wider basket and adjusts as people switch products (if beef gets pricey and people buy chicken, PCE notices). Traders pay closest attention to core PCE, which strips out food and energy, and to supercore.
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