The less volatile measure of the PCE price index is the Core PCE Price Index which excludes the more volatile and seasonal Food and Energy prices.
In comparison to the headline United States Consumer Price Index , which uses one set of expenditure weights for several years, this index uses a Fisher Price Index , which uses expenditure data from both the current period and the preceding period. Also, the PCEPI uses a chained index which compares one quarter's price to the last quarter's instead of choosing a fixed base. This price index method assumes that the consumer has made allowances for changes in Relative Prices .
