"The core PCE price index is one of the Federal Reserve Board's (FED) favorite inflation measures. It refers to the core part of the personal consumption expenditures price index (PCE) that removes volatile factors such as food and energy. It It reflects the price level at which consumers purchase goods and services and can be used to measure inflation trends.

The core PCE price index is generally seen as a more reliable and accurate measure of inflation because it excludes the effects of energy and food prices. Energy and food prices are not suitable indicators of long-term inflation trends because of their high volatility. The core PCE price index is more able to reflect the real situation of inflation.

The core PCE price index plays a very important role in the formulation of US economic policy. The Fed bases its monetary policy on the index with the goal of maintaining price stability and promoting economic growth. If the core PCE price index rises, it usually means that inflation is rising. At this time, the Fed may adopt some monetary tightening policies, such as raising interest rates, to curb inflation. Conversely, if the core PCE price index falls, it would signal a possible slowdown in economic activity and the Federal Reserve could resort to monetary easing, such as cutting interest rates, to stimulate growth.

In addition, the core PCE price index is also an important indicator in the decision-making of the US federal government and companies. The government and enterprises need to pay close attention to changes in the core PCE price index to make correct policy and business decisions. Increased inflation may lead to higher production costs, and companies face the risk of lower profits and higher prices. The government may consider strengthening economic regulation and control policies to curb inflation and maintain stable economic growth. "