While the Fed uses a whole dashboard of indicators to measure inflation, the PCE index is its go-to data point and its sole forecasting tool when members release their quarterly projections.
Policymakers especially hone in on the core PCE measure, which excludes food and energy, when making interest rate decisions.
"To me, it's going to be just one more piece of evidence to confirm that the Fed is seeing sustainable inflation readings at a sustainable pace," said Beth Ann Bovino, chief economist at U.S. Bank.
Any slight upticks are "really just base-effect kinds of things that aren't going to change the Fed's view."
Fed officials aren't declaring victory over inflation yet, though recent statements indicate a more positive outlook.
Persons:
Dow Jones, Beth Ann Bovino, aren't
Organizations:
Federal, Commerce Department, Fed, Labor, Dow, U.S . Bank