When you hear about inflation, your mind might go straight to the Consumer Price Index (CPI), but there's another key measure called the PCE. This lesson will show you why the Federal Reserve prefers PCE for making big decisions that affect your wallet.
The PCE index is trending because it's the Federal Reserve's go-to inflation gauge, and recent reports show it's cooling down.
The latest PCE data, released by the Bureau of Economic Analysis, indicated a slowdown in price increases.