Track the US Core PCE Price Index, the Fed's main inflation gauge influencing rate decisions.
This is the Federal Reserve's main gauge for inflation. Inflation plays a crucial role in currency valuation as rising prices often prompt the central bank to increase interest rates in order to fulfill its mandate of controlling inflation. Unlike the Core CPI, this measure focuses solely on goods and services consumed by individuals. Prices are weighted based on total spending per item, providing valuable insights into consumer spending patterns. The CPI is typically released about 10 days earlier and tends to attract significant attention.
What it Measures
It measures the change in prices for goods and services purchased by consumers, excluding food and energy.
Usual Effect
When the 'Actual' value exceeds the 'Forecast', it is favorable for the currency.
Source & Frequency
Bureau of Economic Analysis (latest release) - https://www.bea.gov/ • This report is published monthly, approximately 29 days after the month concludes.
How Data is Derived
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Also Known As
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Acronym
Personal Consumption Expenditures (PCE), Consumer Price Index (CPI)