The PCE can better account for substitutions between similar items when one of them becomes more expensive. The annual rate of inflation as of December, according to the CPI, is 2.9% over last year.

What inflation says about future rate cuts The Fed's preferred inflation measure, personal consumption expenditure [PCE] based inflation, tends to follow the same patterns as CPI inflation.

The CPI and PPI prints imply that PCE Core will come in at a cool .2% when it is reported at month end. Core CPI printed cool at .2% versus .3%, with headline higher than core due to seasonal ...

One of the most consequential takeaways from the latest PCE report showed that core inflation, which excludes volatile food and energy prices, was stable in December. An earlier reading from the CPI ...

The PCE reading will take onboard a larger set of inputs from the December CPI report. "This means the Fed and markets will not benefit from particularly benign PPI inputs into PCE as was the case ...