SPY & Personal Consumption Expenditures Price Index
The Federal Reserve's preferred measure of inflation, tracking the prices of goods and services consumed by individuals.
SPY Price
Personal Consumption Expenditures
PCE Year-over-Year Inflation
What It Measures
The PCE Price Index measures price changes for personal consumption expenditures, capturing what households actually spend money on. Unlike CPI, PCE: - Uses a chain-weighted formula that accounts for substitution effects (consumers switching to cheaper alternatives) - Includes expenditures made on behalf of consumers (e.g., employer-paid health insurance) - Has broader coverage of goods and services - Tends to run about 0.3 percentage points below CPI historically
Why It Matters
**Fed's Preferred Measure**: The Federal Reserve officially targets 2% PCE inflation, not CPI. **More Comprehensive**: Captures spending patterns more accurately than CPI. **Policy Guidance**: FOMC statements and projections reference PCE inflation. **Less Volatile**: Generally shows smaller swings than CPI.
Key Levels
Data Sources
SPY: S&P 500 ETF daily OHLCV data (1993-02-02 to 2026-01-22)
PCE: PCEPI - Personal Consumption Expenditures Price Index from U.S. Bureau of Economic Analysis
Units: Index 2017=100, Seasonally Adjusted, Monthly