The PCE (Personal Consumption Expenditures) inflation measure is a key indicator of price changes in the economy. It reflects the changes in the prices of goods and services consumed by households and is used by the Federal Reserve to assess inflation and guide monetary policy. The PCE inflation rate is typically less volatile than other inflation indicators like the Consumer Price Index (CPI) and includes a broader range of goods and services.
To watch the PCE inflation data, you’d typically look at the **core PCE price index**, which excludes food and energy prices (due to their volatility). This is a primary metric the Federal Reserve uses to evaluate inflation trends and make decisions about interest rates.