PCE Index

Definition ∞ The PCE Index, or Personal Consumption Expenditures Price Index, measures the average change over time in the prices paid by urban consumers for goods and services. It is the Federal Reserve’s preferred metric for assessing inflation. This index provides a broad view of consumer spending price shifts.
Context ∞ Economic news frequently cites the PCE Index as a crucial indicator for central bank monetary policy decisions, which indirectly influence cryptocurrency markets. Reports analyze how PCE data impacts expectations for interest rate adjustments, affecting investor sentiment and capital allocation between traditional and digital assets. This metric is a key determinant in broader financial market movements.