The Core Personal Consumption Expenditure (PCE) Price Index measures the changes in the price of goods and services bought by consumers and non-profits, excluding food and energy.

The Federal Reserve uses the PCE as its primary measure of inflation.

Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer.

The Core PCE Price Index is a less volatile report than the PCE Price Index since it does not include more volatile food and energy prices.

A higher-than-expected reading should be taken as bullish for the USD

A lower-than-expected reading should be taken as bearish for the USD.