Frequently Asked Questions
Guidelines for Citing BEA Information | ID: 518 | Created: Aug-03-2009
The "core" PCE price index is defined as personal consumption expenditures (PCE) prices excluding food and energy prices. The core PCE price index measures the prices paid by consumers for goods and services without the volatility caused by movements in food and energy prices to reveal underlying inflation trends. Food prices consist of those included in the PCE category of “food and beverages purchased for off-premises consumption.” Prices included in the PCE category “food services and accommodations” are not included in the “food” price index because these services prices tend to be far less volatile than those for food commodities such as meats, fresh vegetables and fruits. Energy prices consist of those included in the PCE categories of “gasoline and other energy goods” and of “electricity and gas” utilities. All PCE prices appear in NIPA Table 2.4.4. Price Indexes for Personal Consumption Expenditures by Type of Product. A table showing the composition of PCE food and energy is shown in “Composition of PCE food and energy”.
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