#PCEInflationWatch The Personal Consumption Expenditures (PCE) Price Index is a key measure of inflation in the United States, reflecting changes in the prices of goods and services purchased by consumers. It's closely monitored by the Federal Reserve to inform monetary policy decisions.

As of December 2024, the PCE Price Index increased by 2.6% compared to the same month in the previous year, indicating a slight uptick from the 2.4% rise observed in November 2024. This suggests a modest acceleration in consumer price inflation during that period.

The Core PCE Price Index, which excludes volatile food and energy prices to provide a clearer view of underlying inflation trends, rose by 0.1% month-over-month in November 2024, the smallest increase in six months. On an annual basis, core PCE inflation remained steady at 2.8% in November, unchanged from October.

These figures are essential for understanding the current inflation landscape and anticipating potential adjustments in monetary policy by the Federal Reserve.

For a more detailed explanation of the PCE and its significance, you might find this video helpful: