The PCE Price Index, or Personal Consumption Expenditures Price Index, tracks price changes for goods and services purchased by households. The Bureau of Economic Analysis (BEA) compiles it as part of the national accounts; the index is reported for the overall PCE price level and for a core version that excludes food and energy. PCE stands for Personal Consumption Expenditures.
The PCE Price Index is a primary inflation indicator used in policy analysis and in the BEA's measurement of real spending. The Federal Reserve regards the core PCE Price Index as its preferred gauge of inflation when assessing monetary policy. The overall PCE index is sometimes compared with the Consumer Price Index (CPI) to understand how different baskets and methodologies capture price changes.
Compared with the CPI, the PCE Price Index uses chain-weighted weights and broader coverage of households and services, which can lead to different readings over time. The core PCE excludes food and energy to reduce the volatility of the headline series and highlight underlying inflation dynamics.
BEA releases monthly updates for both the overall and core PCE price indices. Movements reflect price changes across a wide range of goods and services, including healthcare, housing services, and durable and nondurable goods. Analysts watch these readings for signals about inflation trends and the pace of real spending.
A report shows the PCE Price Index increased by 0.3% in the month, contributing to a higher annualized inflation pace.
CPI (Consumer Price Index) · Core PCE Price Index · PCE (Personal Consumption Expenditures) · BEA (Bureau of Economic Analysis) · Federal Reserve · Inflation