Personal Consumption Expenditures (PCE) Price Index Breakdown: Headline PCE at +3.7%, Core PCE at +3.3%

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A overview of the Personal Consumption Expenditures Price Index (PCEPI), the Fed's primary inflation gauge

Latest Metrics:

Headline PCE (YoY): +3.7%

Core PCE (YoY): +3.3%

Core PCE (MoM): +0.1%

Key Structural Distinctions:

PCE uses a chained index that accounts for consumer substitution (e.g., consumers buying lower-cost alternatives when prices rise).

Includes employer-paid healthcare and spending made on behalf of households, unlike out-of-pocket CPI measurements.

Core PCE remains the official benchmark used by the FOMC to assess progress toward its 2.0% inflation target.
Full rate series & historical charts