How Are Personal Consumption Expenditures Measured?

Written By Great Point Capital

The Personal Consumption Expenditures Price Index (PCEPI) measures goods and services spending by the U.S. consumer. The monthly number provides insight into economic strength and how price fluctuations affect consumer spending.

Key Takeaways:

  • The PCEPI provides one figure that is derived from all consumer spending categories, and one additional figure that omits food and energy data––this is called core PCE price index.

  • Durable (motor vehicles, furnishings, etc.) and nondurable goods (items like food, clothing, energy goods, etc.) are key components of the numbers reported by the BEA. Additionally, services such as healthcare, housing, utilities are included to measure PCE.

  • In August, consumer prices rose over 2.7%, denoting that “prices are increasing faster than the Federal Reserve’s goal of a 2% annual rate,” according to Investopedia.


Interested in reading more? See this Investopedia article on PCE numbers in August, and this article on PCE and its measurement.

Great Point Capital
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