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MNI BRIEF:Dallas Fed Trimmed Mean Inflation Fastest Since 1983


The Dallas Fed's trimmed mean PCE 12-month inflation rate moved higher to 4.40% over the 12 months to July from 4.35% in June, the fastest gain since 1983, underlining why Chair Jerome Powell is resolute about keeping high interest rates until price gains move back to target.

The one-month annualized rate halved in July to 3.39% from 6.92% the prior month and the six-month annualized inflation rate also eased, falling to 4.3% from 4.8% in June. Officials have cited the Dallas Fed's trimmed mean measure as one of the best indicators of underlying inflation.

The Cleveland Fed's median PCE inflation rate released earlier Friday also showed a step down in the month-over-month figures, increasing 0.3% in July, down from 0.7% in June and 0.6% in May and the lowest since March. The Cleveland Fed's year-over-year figure was roughly flat at the highest pace since 1982 at 5.2%. Official Bureau of Economic Analysis data from the Commerce Department earlier Friday showed PCE inflation easing slightly, with headline inflation rising 6.3% over the year, while core was 4.6%.

Source: Dallas Fed

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

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