PCE
Personal Consumption Expenditures
PCE is a measure of how people are adjusting their spending based on the impact of inflation on their overall financial situation. In other words, their overall ability to afford life’s necessities. Viewed another way, will I buy chicken or beef, or will I eat baked beans…
Wealthy people are not impacted by inflation to the degree that ordinary people are. PCE for the wealthy stays relatively flat. The biggest impact of inflation on the wealthy is their calculation of when to trade in their yacht for a larger one.