PCE inflation refers to the Personal Consumption Expenditures Price Index, which measures the change in prices of goods and services purchased by consumers in the United States. As of November 2024, the PCE price index showed a 2.4% increase from the previous year, with the core PCE price index, excluding food and energy, rising 2.8% ¹.
The core PCE price index is considered a key indicator of inflation, as it excludes volatile food and energy prices. The Federal Reserve closely monitors the core PCE price index to determine monetary policy, aiming to keep inflation at a target rate of 2% ².
Here's a breakdown of the latest PCE inflation data:
- *PCE Price Index*: 2.4% increase from November 2023 to November 2024
- *Core PCE Price Index*: 2.8% increase from November 2023 to November 2024, excluding food and energy
- *Monthly Change*: 0.2% increase in the core PCE price index from October 2024 to November 2024.
