Concept guide · Growth & Inflation
PCE Inflation & the Federal Reserve
Why the personal-consumption-expenditures price index differs from CPI and matters for U.S. policy.
What it measures
The Personal Consumption Expenditures price index is a U.S. measure of prices associated with household consumption, compiled by the Bureau of Economic Analysis.
Core versus headline
The core measure excludes food and energy. Monthly growth and twelve-month growth refer to different windows, and neither should be confused with survey diffusion indexes.
Policy interpretation
Inflation interacts with employment and output when markets assess Federal Reserve policy. One number rarely determines a policy decision.