The personal consumption expenditure (PCE) chain-type index, or deflator, is a measure of inflation, similar to the CPI.

While PCE is the amount of money individuals spend on goods and services, the index measures the inflation rate for those expenditures. The PCE index is different from the CPI in that it better accounts for the fact that, as prices change, people's spending habits change.

This piece of the index removes the volatility associated with changing food and energy prices, just like the CPI, and focuses on the remaining items in the index.