PCE stands for Personal Consumption Expenditures; The Core PCE Price Index is a measurement of consumer inflation rates, as seen when purchasing goods and services. PCE gauges the level of price changes seen within consumer goods and services. Core PCE excludes Food and Energy because month-to-month purchase volatility of such can skew underlining consumer trends. The Federal Reserve tends to favor this indicator for its clear look at consumer inflation, for this reason traders watch the Core PCE closely.