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MNI BRIEF: Dallas Fed Trimmed Mean Inflation Shows A Step Down

(MNI) WASHINGTON

The Dallas Fed's trimmed mean PCE inflation one-month annualized rate was 3.04% in April, stepping down for the second month near 3% after running over 4% in the fall and surging to 6.29% in January.

Still, the 12-month inflation rate moved higher to 3.75% over the 12 months to April from 3.70% in March, the fastest annual gain since 1991. Officials have cited the Dallas Fed's measure as one of the best indicators of underlying inflation.

However, the Cleveland Fed's median PCE inflation rate released Friday, which last month also showed a step down in month-over-month figures, reversed course and showed a 0.46% increase from the prior month, up from 0.24% in March. The Cleveland Fed's year-over-year figure increased to 4.39% from 4.12% the prior month, the highest since 1990. Official Bureau of Economic Analysis data from the Commerce Department earlier Friday showed headline PCE inflation rising 6.3% over the year, while core PCE was 4.9%.

Source: Dallas Fed

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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