PCE Inflation
Definition
The rate of change in the U.S. personal consumption expenditures price index, which measures prices for goods and services consumed by households.
United States
Why does the Fed use PCE inflation?
The Fed expresses its longer-run inflation goal using the PCE price index. Its coverage includes some spending on households’ behalf, such as employer-paid health benefits. CPI and PCE can move differently because coverage, weights and methods differ.
U.S. Bureau of Economic Analysis PCE price index