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Inflation · % · Monthly

Core PCE (Fed's Preferred Measure)

What It Is

PCE excluding food and energy. The Federal Reserve's official preferred inflation gauge and the measure it explicitly targets at 2%.

Why It Matters

Every FOMC statement references Core PCE. This single number determines whether the Fed hikes, holds, or cuts. It is the most important inflation number for markets.

How To Read

Above 2% = Fed is behind or on target. Sustained above 3% = hawkish Fed. Falling toward 2% = conditions for rate cuts. This is the number to watch.

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