PCE

Personal Consumption Expenditures price index, published monthly by the Bureau of Economic Analysis. Unlike the CPI, whose basket is fixed, the PCE basket shifts as consumers switch between goods, so it usually reads lower than CPI over long stretches. The Fed made it the official yardstick for its inflation target in February 2000.

Predictions & track record (1)

• Awaiting grading The Fed swapped its inflation yardstick from CPI to PCE, and accuracy was not the only reasonScore on the July PCE released in late August: a return to a positive month-over-month reading counts as a one month energy effect, while a second straight decline or core PCE below 3.1% counts as a trend.

1 related posts

• Watch The Fed swapped its inflation yardstick from CPI to PCE, and accuracy was not the only reason 메르 (ranto28) · 2026-07-31