PCE (Personal Consumption Expenditures)
The PCE is the price index of US household consumer spending. Its core version is the Fed's preferred measure of inflation.
Published monthly by the Bureau of Economic Analysis, the PCE covers a broader scope than the CPI and adjusts its weights faster when consumers change their habits. It often shows slightly lower inflation than the CPI.
The Fed sets its 2% inflation target in terms of PCE. Core PCE, excluding food and energy, is therefore watched closely to anticipate its decisions.
In practice, the market often reacts less to the PCE than to the CPI, because many of its components can be estimated from the CPI and producer prices released earlier in the month.