Prices for goods and services constantly change. the PCE index tracks what a consumer pays and represents that as a number.

You have a basket of goods and services, each with a Different weight. If gas prices go up, that would have a larger impact on the PCE than the price of tomato’s because gasoline represents a larger portion of your total spending.

This is the preferred way the Federal Reserve measuring inflation. There are forecasting models that point to lower inflation by June 2023. Lower inflation typically translates to lower rates.

Stay tuned CPE numbers come out tomorrow.