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CPI Dispersion Measures Show Some Disinflationary Progress

US DATA

MNI’s dispersion measures saw some disinflationary progress on the month but more so at the extremes and less so more broadly.

  • Specifically, the share of the entire basket seeing inflation above 5% annualized on the month fell from 51% to 42% for its lowest since May’21 whilst the share seeing outright deflation rose from 23% to 35% for its highest since Jul’22.
  • The >5% share remains significantly higher than its 2019 average of 25% although the <0% share is close to the 2019 average of 38%.
  • Less progress for those seeing >3% annualized on the month, only down from 56% to 54% (2019 av 41%) for the lowest since Dec’22 but before that also since Jun’21.

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