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Little Let Up In Regional Fed PCE Inflation

US DATA
  • Whilst core PCE inflation slowed from 0.61% to just 0.085% M/M in July, pushing annual growth from 4.8% to 4.6% Y/Y, alternate regional Fed measures show there is still a reasonable breadth to price increases across the entire PCE basket.
  • Dallas Fed trimmed PCE inflation nudged higher from 4.35 to 4.40% Y/Y for a new cycle high whilst the Cleveland Fed median was unchanged at its high of 5.22% Y/Y.
  • Sequentially, the CF median fell from 0.70 to 0.29% M/M, but was only the lowest since March as opposed to standard core PCE which was the lowest since Nov'20. Both in charts below.

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