Charles Hepworth, Investment Director, GAM Investments, says: “The Federal Reserve’s preferred measure of inflation was just released for the month of December 2023 and it keeps alive the chances of a rate cut in March. PCE (Personal Consumption Expenditures), as a measure of inflation differs, to the wider known CPI index in that it only measures goods and services consumed by individuals and that is why the Fed prefers it as a broad gauge of inflation when judging policy.