The personal consumption expenditures (PCE) price index covers a wider range of spending than the CPI, including spending made on households' behalf such as employer-paid health insurance. Core PCE excludes food and energy prices, which swing with weather and oil markets.
Core PCE usually runs a little below core CPI because of differences in weights and coverage.
Why it matters
The Fed's 2% inflation target is defined on PCE, and it judges underlying pressure from the core measure. A sustained gap above 2% keeps the Fed leaning towards higher rates.
See the data: US core PCE.
General information, not advice.