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Personal Consumption Expenditures (PCE) Price Index

The Personal Consumption Expenditures (PCE) Price Index is a measure of inflation in the United States economy. It is published by the Bureau of Economic Analysis (BEA) and is based on the prices paid by consumers for goods and services, including those purchased by the government and non-profit institutions.

The PCE Price Index measures the change in the prices of a basket of goods and services that are typically consumed by households, including food, housing, medical care, transportation, and other consumer goods. The index takes into account changes in the quality and quantity of goods and services purchased, as well as changes in the prices of those items.

The PCE Price Index is considered to be a more comprehensive measure of inflation than the Consumer Price Index (CPI), which is also used to measure inflation. This is because the PCE Price Index includes a broader range of goods and services, and it is updated more frequently than the CPI. The Federal Reserve uses the PCE Price Index as one of its primary indicators of inflation when making monetary policy decisions.

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