While the consumer price index is more commonly known, the Fed relies heavily on the PCE for deciding its stance on monetary policy. At the moment, the Fed is keeping interest rates high – and borrowing costs for consumers elevated – as it wants to see more data on how President Donald Trump’s import tariffs are affecting inflation.

The measure of inflation watched by the Federal Reserve ticked slightly higher in May, but the numbers didn't show a big upswing in prices caused by President Trump's tariffs. Prices rose by 2.3% over the 12 months through May,