Supercore PCE
a.k.a. Supercore inflation, Core services ex-housing
A slice of US inflation covering services prices other than housing and energy, watched as a read on…
In plain English
A slice of US inflation covering services prices other than housing and energy, watched as a read on wage-driven inflation.
Supercore PCE takes the PCE price index and strips it down further. It looks only at services, then removes housing and energy. What is left, things like healthcare, haircuts, travel and dining out, is closely tied to labour costs.
The Fed has highlighted this measure because it shows whether inflation is becoming baked into wages and services, which is harder to cool than a spike in goods or fuel prices.
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