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Monday, March 03, 2014

'Trimmed Mean PCE Inflation Rate'

Following up on the post below this one, from the Dallas Fed today:

Trimmed Mean PCE Inflation Rate: The Trimmed Mean PCE inflation rate is an alternative measure of core inflation in the price index for personal consumption expenditures (PCE). It is calculated by staff at the Dallas Fed, using data from the Bureau of Economic Analysis (BEA).

January 2014

The Trimmed Mean PCE inflation rate for January was an annualized 0.6 percent. According to the BEA, the overall PCE inflation rate for January was 1.2 percent, annualized, while the inflation rate for PCE excluding food and energy was 1.1 percent.

The tables below present data on the Trimmed Mean PCE inflation rate and, for comparison, the overall PCE inflation and the inflation rate for PCE excluding food and energy. The tables give annualized one-month, six-month and 12-month inflation rates.

One-month PCE inflation, annual rate
  Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
PCE 1.2 1.3 0.6 0.8 2.0 1.2
PCE excluding food & energy 1.3 1.1 1.4 1.4 1.0 1.1
Trimmed Mean PCE 1.3 1.8 1.6 1.4 1.2 0.6

 

Six-month PCE inflation, annual rate
  Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
PCE 0.6 1.0 1.6 1.6 1.2 1.2
PCE excluding food & energy 1.0 1.1 1.4 1.4 1.2 1.2
Trimmed Mean PCE 1.2 1.3 1.6 1.6 1.5 1.3

 

12-month PCE inflation
  Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
PCE 1.1 0.9 0.8 1.0 1.1 1.2
PCE excluding food & energy 1.2 1.2 1.1 1.2 1.2 1.1
Trimmed Mean PCE 1.3 1.3 1.4 1.4 1.4 1.3
NOTE: These data are subject to revision

The following chart plots the evolution of the distribution of price increases in the monthly component data over the past year. The chart shows the percentage of components each month, weighted by their shares in total spending, for which prices grew between 0 and 2 percent (at an annual rate); between 2 and 3 percent; between 3 and 5 percent; between 5 and 10 percent; and more than 10 percent.

Evolution of the distribution of component price increases

    Posted by on Monday, March 3, 2014 at 09:52 AM in Economics, Inflation, Monetary Policy | Permalink  Comments (4)

          


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