core PCE inflation

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Core PCE inflation (Personal Consumption Expenditures) is one of the fundamental indicators of the US economy and is highly valued by the FOMC in its interest rates decisions. Its main difference from CPI is that it shows how much of the earned income is spent on current consumption.

On February 17, 2000, in its Monetary Policy Report submitted to the US Congress, the Federal Reserve Board names core PCE as its preferred method to assess inflation.

Higher PCE values tend to be positive to the US dollar. Lower values can hurt the currency.

Core PCE inflation is reported by the US Bureau of Economic Analysis in the same report as personal income and spending, about 30 days after the month ends.

The blog posts below mention core PCE inflation starting several years ago.

2019

2018

2017

2016

2015

2010

2008

2007