The PCE price index measures the prices of goods and services bought by US households and is the Federal Reserve's preferred inflation gauge.
PCE stands for Personal Consumption Expenditures. It is published monthly by the Bureau of Economic Analysis (BEA). It covers a wider range of spending than CPI (including things paid on your behalf, like employer health insurance) and adjusts for people switching to cheaper items, so it usually runs a bit lower than CPI.
Why it matters to you
The Fed's 2% inflation target is defined using PCE, so this report matters for where interest rates go next.