The Dallas Fed's trimmed mean PCE inflation one-month annualized rate surged in May to 5.31%, the highest since January, after two months of much softer readings of 2.92% in April and 3.05% in March.
The 12-month inflation rate also moved higher to 3.96% over the 12 months to May from 3.76% in April, the fastest annual gain since 1990. Officials have cited the Dallas Fed's measure as one of the best indicators of underlying inflation.
The Cleveland Fed's median PCE inflation rate released earlier Thursday also showed a step up in the month-over-month figures, jumping 0.58% in May, up from 0.44% in April and 0.24% in March. The Cleveland Fed's year-over-year figure increased to 4.75% from 4.40% the prior month, the highest since 1983. Official Bureau of Economic Analysis data from the Commerce Department earlier Thursday showed headline PCE inflation rising 6.3% over the year, while core PCE was 4.7%.
Source: Dallas Fed