What Is It and Should I Care?
In this series, the 'Ville tackles a weighty, scary-sounding economic data release, bottom-lining the facts and explaining the significance. This installment: PCE Price Index. Awesome!
What is it? Referred to by many different names in what might be viewed as an overt attempt to create mass confusion, anger and, ultimately, indifference, is really just another measure of price changes in goods and services purchased by consumers, hence the "personal" in Personal Consumption Expenditures.
Who reports it? The Bureau of Economic Analysis of the Department of Commerce.
When is the report released? Monthly; usually the last business day of the month.
How does it work? The PCE tracks consumer expenditure changes from quarter to quarter.
Who uses it? The Fed closely watches this index because it's a deeper, more robust measure of price changes and incorporates both the Consumer Price Index and the Producer Price Index in its composition.
Should I care?
Value to professional market participants: Two Coins (out of possible five).
Impact on your 401(k): One South Florida Villa (out of possible five).
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