Current Value
131.5
Index (2017=100)
+0.4% MoM
YoY Change
+4.1%
Year over Year
vs. +3.8% prior
5Y CAGR
+4.0%
Compound Annual
Total Observations
809
Monthly, Jan 1959–

Data

PCE Price Index (Personal Consumption Expenditures Inflation) in United States — source data. U.S. Bureau of Economic Analysis.
Period PCE Index Growth (YoY)
Q1 2026 130.4 +3.5%
Q4 2025 128.6 +2.9%
Q3 2025 127.6 +2.8%
Q2 2025 126.7 +2.6%
Q1 2025 125.9 +2.4%
Q4 2024 125 +2.7%
Q3 2024 124.2 +2.3%
Q2 2024 123.5 +2.5%

About this Dataset

The Personal Consumption Expenditures (PCE) Price Index is the Federal Reserve's preferred measure of US inflation, published monthly by the Bureau of Economic Analysis (BEA) as part of the national income and product accounts. It tracks price changes across a broader basket than the CPI — one that includes goods and services purchased on consumers' behalf by employers and government programs, such as employer-sponsored health insurance.

The Fed's 2% inflation target is defined in terms of PCE inflation, not CPI — a distinction that matters for anyone modeling monetary policy paths.

  • Coverage: All personal consumption expenditures across US households
  • Frequency: Monthly, released alongside the BEA's personal income and outlays report
  • Base period: 2017 = 100
  • Geographic scope: United States, national aggregate
  • Data history: January 1959 to present (809+ observations)
  • Methodology: Chain-weighted (Fisher) index, which updates expenditure weights quarterly to reflect consumer substitution — unlike the CPI's periodically-fixed basket

The chain-weighted methodology is the main reason PCE inflation typically runs a few tenths of a point below CPI inflation over most periods: as relative prices shift, the PCE basket adapts faster to how consumers actually respond, while the CPI basket holds substitution effects fixed for longer between weight updates.

Frequently Asked Questions

The PCE (Personal Consumption Expenditures) Price Index measures price changes across the full range of goods and services US households consume, using a chain-weighted formula that updates spending weights every quarter. This lets it capture consumer substitution — when beef gets pricier and shoppers shift to chicken — more accurately than the CPI's fixed basket. The Federal Reserve names PCE inflation as its preferred gauge for the 2% target, in part because it typically runs somewhat cooler than CPI: in May 2026 the PCE index stood at 131.5 (2017=100), up 4.1% year over year.

PCE inflation has moved higher through early 2026. Year-over-year growth was +2.4% in Q1 2025, cooled toward the high-2% range through mid-2025, then reaccelerated to +2.9% in Q4 2025 and +3.5% by Q1 2026, with the most recent monthly reading at +4.1% year over year in May 2026 — well above the Fed's 2% objective.

The PCE Price Index rose 0.4% month over month in May 2026, from 130.9 in April 2026 to 131.5, following a similar 0.4% gain in April. Monthly changes of this size, sustained over several months, are consistent with annualized inflation running well above the Fed's target.

The index rose from 108.2 in May 2021 to 131.5 in May 2026 — a compound annual growth rate of roughly 4.0%, reflecting the post-pandemic inflation surge of 2021–2022 and its slower, incomplete unwind since.

The PCE Price Index dataset used here spans January 1959 to May 2026 — 809 monthly observations. Values are indexed so that the 2017 average equals 100; a reading of 131.5 in May 2026 means prices in the PCE basket were roughly 31.5% higher than their 2017 average.