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Inflation

PCE Price Index

The Federal Reserve's preferred inflation gauge; its 2% target is defined in terms of PCE inflation.

High impact

Next PCE release

8:30 a.m. ETin 19 days

Data for September 2026

After that

Source: BEA release schedule ↗ · checked Oct 10, 2026. Agencies can reschedule; confirm before trading.

Frequency
Monthly (Personal Income and Outlays report)
Release time
8:30 a.m. ET
Typical timing
Usually in the last week of the month, covering the prior month Official schedule ↗

What PCE measures

The Personal Consumption Expenditures price index measures prices for goods and services consumed by households, including spending made on their behalf (such as employer-paid health insurance). It is published by the BEA in the monthly Personal Income and Outlays report, alongside personal income and spending.

PCE has broader coverage than CPI, uses different weights (shelter carries less weight) and adjusts more quickly as consumers substitute between goods. As a result, PCE inflation has usually run somewhat below CPI inflation.

Why traders watch it

The Fed's 2% inflation objective is stated in terms of PCE. Core PCE is the measure the Fed most often cites when assessing underlying inflation.

Because CPI and PPI are released earlier, economists can often estimate core PCE closely in advance, so the market reaction is frequently smaller than for CPI — unless the estimate misses or revisions are significant.

What to look at in the release

Headline PCE y/yAll items
Core PCE m/m and y/yExcludes food and energy; the Fed's main focus
Personal income and spendingRead on consumer demand
Saving rateHousehold cushion for future spending

How markets tend to interpret it

Relative to consensus expectations — not the absolute level.

Stronger / hotter than expected

Firmer-than-expected core PCE can reinforce concern about persistent inflation and lift short-term yields.

Weaker / cooler than expected

Softer-than-expected core PCE can support expectations of easier policy.

Context matters. Since much of the PCE outcome is anticipated from CPI and PPI, the surprise relative to updated estimates matters more than the raw comparison with earlier forecasts.

Historical data

Core PCE price index, year-over-year

% y/y · last 10 years

3.0% y/y
Latest: Aug 1, 2026
Historical · FRED
012345620172018201920202021202220232024202520262% headline PCE objective (reference)3.0
Source: BEA via FRED (PCEPILFE) · transformed by PWS Markets · updated on a daily refresh schedule
Show recent data
DateValue (% y/y)
Aug 1, 20263.0
Jul 1, 20263.0
Jun 1, 20263.0
May 1, 20263.2
Apr 1, 20263.1
Mar 1, 20263.1
Feb 1, 20263.0
Jan 1, 20262.9
Dec 1, 20252.9
Nov 1, 20252.7
Oct 1, 20252.7
Sep 1, 20252.8
Headline PCE price index, year-over-year

% y/y · last 10 years

3.4% y/y
Latest: Aug 1, 2026
Historical · FRED
0246820172018201920202021202220232024202520262% headline PCE objective (reference)3.4
Source: BEA via FRED (PCEPI) · transformed by PWS Markets · updated on a daily refresh schedule
Show recent data
DateValue (% y/y)
Aug 1, 20263.4
Jul 1, 20263.4
Jun 1, 20263.5
May 1, 20263.8
Apr 1, 20263.6
Mar 1, 20263.4
Feb 1, 20262.8
Jan 1, 20262.7
Dec 1, 20252.8
Nov 1, 20252.7
Oct 1, 20252.7
Sep 1, 20252.8

Markets that watch PCE

Each note explains the channel for that market; reactions are tendencies, not rules.

MarketWhy it can matter
US 2YThe Fed’s 2% target is defined using headline PCE inflation; core PCE helps assess underlying inflation. Because CPI and PPI let forecasters estimate it in advance, the 2-year usually reacts less than to CPI unless the print or revisions miss those estimates.
GoldAs the Fed's preferred inflation gauge, PCE can shift real-rate expectations, though gold's reaction is usually smaller than to CPI because the result is largely estimated in advance.

PCE FAQ

Why does the Fed prefer PCE over CPI?

PCE covers a broader range of spending, including purchases made on households' behalf, and its weights update as consumers substitute between products. The Fed considers it a more comprehensive measure of inflation.

Why is PCE usually lower than CPI?

Mainly because of differences in weights (shelter is a smaller share of PCE), scope and formula. The gap varies over time.