The Personal Consumption Expenditures (PCE) Price Index Month-over-Month (MoM) tracks the monthly change in the prices of goods and services consumed by individuals in the United States. Unlike the core version, this index includes volatile food and energy prices, providing a comprehensive view of total inflation. It is a key component of the Personal Income and Outlays report issued by the Bureau of Economic Analysis. Investors watch this closely for immediate signs of inflationary pressure shifts.
The MoM change is calculated by comparing the current month's price index level to the previous month's level. It uses a chain-type index formula to reflect the actual items consumers are buying in the current period.
