Personal consumption expenditures

Goods inflation has slowed down a lot over the last year, thanks in part to higher interest rates. But the Federal Reserve is having a harder time slowing services inflation.

So far, price increases have not driven customers away. But there’s evidence that is starting to change.

The personal consumption expenditures price index, better known as the PCE, tracks what we paid for goods and services in the previous month.

Reports on inflation, consumer confidence and jobs will be consequential. We asked economists to point out the most important items.

The PCE and CPI measure different things, but the message they send to consumers may influence expectations — that then can affect inflation.

But they'll shift back when goods they want — like cars — become available.

For monetary officials, the personal consumption expenditures gauge beats the CPI. A trip to the grocery store helps explain why.