Here Comes PCE...

Included in this report is PCE, the Fed's preferred measure of inflation.

Economists are expecting core PCE, which measures prices paid for consumer goods excluding food and energy, to climb 1.5% year-over-year. On a monthly basis, core PCE is expected to increase 0.2%.

The PCE price deflator index is expected to show prices rose 1.8% year-over-year, and 0.3% on a monthly basis. Personal income and personal spending are both expected to increase 0.4%.

The PCE differs from the consumer price index, or CPI, report in a few ways and is typically lower than the CPI.

Last week, the May CPI report showed inflation climbed 2.1% year-over-year, and 0.4% month-over-month.

In a research note, Deutsche Bank's Joe LaVorgna notes that prices in the healthcare industry are up 2.4% annualized over the last three months, and that these prices are a large influence on the PCE index.

Since last week's CPI report, inflation has come to the fore as a major part of the discussion about where the economy is headed. The Federal Reserve says that it aims for 2% inflation and full employment, but inflation has long undershot the Fed's target.

We'll be back with a live report at the bottom of the hour.