PCE
MacroDefinition
Personal Consumption Expenditures. The Fed's preferred inflation measure (vs. CPI for the public). Includes more services, weighted by what people actually buy as prices change (chain-weighted), and includes employer-paid healthcare.
PCE typically runs 0.3-0.5 ppt below CPI. The Fed's 2% inflation target is set on Core PCE specifically.
PCE typically runs 0.3-0.5 ppt below CPI. The Fed's 2% inflation target is set on Core PCE specifically.
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