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.
2020
- EUR/USD Edges Higher, Struggles to Keep Gains
- EUR/USD Rises as Markets Digest Powell’s Speech
- EUR/USD Drops on Income and Spending; Strengthens on Sentiment Indicators
- EUR/USD Remains Weak amid Coronavirus-Related Risk Aversion
- EUR/USD Rallies Ahead of Trump’s Press Conference
- EUR/USD Volatile After ECB Meeting, US Data
- EUR/USD Fails to Extend Rally to Sixth Session
- EUR/USD Retreats After Attempting to Extend Rally
- US Data Mixed, EUR/USD Surges
2019
- EUR/USD Crashes on Eurozone & US Data
- EUR/USD Declines After Positive Revision of US GDP
- EUR/USD Flat After Disappointing US Data, FOMC Rate Cut
- EUR/USD Rises as US Consumer Spending & Core PCE Inflation Slow
- EUR/USD Continues to Fall for Whole Week
- EUR/USD Continues to Fall After FOMC Interest Rate Cut
- EUR/USD Gains as Eurozone Inflation Accelerates
- EUR/USD Gains Despite Risk Aversion, Poor Eurozone Data
- EUR/USD Rallies After Data from Eurozone
- EUR/USD Moves in Range After Attempting to Bounce
- EUR/USD Trims Gains Caused by Poor US Data
2018
- EUR/USD Declines as Risk Aversion Grabs Hold of Markets
- EUR/USD Stable, Shows Muted Reaction to FOMC Minutes
- EUR/USD Weak After Eurozone Economic Growth Slows
- EUR/USD Recovers from Drop Caused by Italian Budget
- EUR/USD Crashes After Economic Releases on Thursday
- EUR/USD Attempts to Rally on Eurozone Inflation, Retreats to Opening
- EUR/USD Strong After EU Immigration Deal
- EUR/USD Volatile amid Geopolitical Uncertainty
- EUR/USD Declines After Disappointing German Retail Sales
- EUR/USD Slows Rally Ahead of Holiday
- EUR/USD Bounces from Daily Lows After Powell’s Second Testimony
- EUR/USD Rallies After European GDP Figures
2017
- EUR/USD Drops as Catalan Separatists Win Elections
- EUR/USD Jumps Despite Positive US Data
- EUR/USD Rises After Core PCE Inflation Misses Expectations
- EUR/USD Falls, Rebounds Later
- EUR/USD Retreats, Stays Close to Multi-Year Highs
- EUR/USD Declines on Last Day of June
- EUR/USD Halts Decline Even as Eurozone Inflation Disappoints
- Dollar Gains on Euro After Trump’s Speech, Retreats Later
2016
- Dollar Gains on Euro as Impact of FBI’s Clinton Probe Fades
- EUR/USD Recovers Despite Good Data from USA
- Will FOMC Raise Interest Rate in September 2016?
- EUR/USD Rallies After Abysmal US GDP Report
- What to Expect from FOMC June 2016 Meeting?
- EUR/USD Ends Consolidation Period with Move Down
- A Hike, a Halt, or a Cut? FOMC March 2016 Meeting
- EUR/USD Starts Week Strong