#PCEInflationWatch

The PCE Price Index measures changes in the prices that people living in the U.S. pay for goods and services, and is closely monitored by the Federal Reserve as an indicator of inflationary trends.

The core PCE Price Index, which excludes volatile food and energy prices, is particularly important to the Fed because it provides a clearer picture of underlying inflationary trends. The Fed has a 2% annual inflation target, and any significant deviation from that target can influence its monetary policy decisions, such as adjusting interest rates.

PCE inflation data is released monthly by the Bureau of Economic Analysis (BEA), and often receives significant attention from financial markets, policymakers, and economists.