#PCEMarketWatch PCE illuminates shopping habits and savings rates. Economists and analysts use PCE to make projections about future spending and economic growth. It provides insights to companies about their business needs related to products and services and can influence hiring and investment.

The "core" Personal Consumption Expenditures (PCE) Index, which excludes food and energy costs and is closely monitored by the central bank, rose 2.5% year-on-year, in line with expectations and lower than the 2.7% seen in March.

Over the last twelve months, core PCE inflation is expected to decline to 2.5% from 2.6%. Meanwhile, overall annual PCE inflation is expected to retreat to 2.2% from 2.3% during this period.

An increase in both PCE and core PCE may signal rising inflation; a decrease may indicate falling inflation. These results may also suggest that inflation is still growing, but at a cooler pace. The Fed's target for inflation is 2% annually.