PCE Price Index + Personal Income + Consumer Spending Report for May 2016

Earlier today, the Commerce Department's Bureau of Economic Analysis (BEA) released its report on The PCE Price Index, Consumer Spending and Personal Income for May 2016:

Consumer Spending (Personal Consumption Expenditures)
Predicted: +0.4%
Actual: +0.4%

Personal Income
Predicted: +0.3%
Actual: +0.2%

The highlighted percentages represent the month-to-month change in Consumer Spending (aka Personal Consumption Expenditures) and Personal Income for the entire United States.

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Personal Consumption Expenditures (PCE) Price Index
Predicted: +0.2%
Actual: +0.2%

• Change from 12 months ago: +0.9%

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Core PCE Price Index
( = PCE Price Index minus food and energy)
Predicted: +0.2%
Actual: +0.2%

• Change from 12 months ago: +1.6%

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The yellow-highlighted percentages represent the month-to-month change in the prices associated with domestic personal consumption.  The PCE Price Index is different from the Consumer Price Index (CPI) in that it is a very broad measure of the prices associated with domestic products and services, while the CPI measures a more limited fixed basket of goods and services.

The broad nature of the PCE Price Index is key to why it is the Federal Reserve's preferred measure of inflation.  The Federal Open Market Committee (FOMC) pays very close attention to it.

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The "predicted" figures are what economists were expecting, while the "actual" figures are the true or real figure.

Click here to view the full Commerce Department report (PDF).

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