MNI BRIEF: Dallas Fed Price Gauge Slows To 4.4% Over Year
The Dallas Fed's trimmed mean PCE inflation rate again moved lower in December to 4.42% over the 12 months from a peak of 4.75% in August.
The one-month annualized rate slowed to 2.34% in December from 3.00% the prior month, while the six-month annualized inflation rate slowed to 3.84% from 4.64% in November. The portion of components rising faster than a 10% rate was almost 14% in December, down from 18% in November and 35% in September. Officials have cited the Dallas Fed's trimmed mean measure as one of the best indicators of underlying inflation.
(See: MNI INTERVIEW: Fed May Pause When Core Prices Fall Under 3.5%)
The Cleveland Fed's median PCE inflation rate released earlier Friday also signaled a stepdown in underlying inflation with the month-over-month figure increasing 0.2% in August, down from 0.3% in November. The year-over-year figure moved down to 5.4% from 5.8%.
Source: Dallas Fed