Definition ∞ PCE inflation refers to the rate of increase in the Personal Consumption Expenditures Price Index, reflecting the general rise in prices for consumer goods and services. This metric is a primary gauge of inflationary pressures within an economy. It helps economists and policymakers understand consumer purchasing power changes.
Context ∞ News about PCE inflation directly influences expectations for central bank actions, such as interest rate adjustments, which can impact the perceived value and attractiveness of digital assets. High PCE inflation might prompt investors to seek alternative stores of value, potentially increasing interest in cryptocurrencies. This economic indicator often drives significant market reactions in the digital asset space.
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