MNI BRIEF: Dallas Fed Price Gauge Jumps To Fastest Since 1982

The Dallas Fed's trimmed mean PCE inflation rate moved higher to 4.74% over the 12 months to August from 4.51% in July, the fastest gain since 1982, underlining why Chair Jerome Powell is resolute about keeping high interest rates until price gains move back to target.

The one-month annualized rate surged in August to 5.97% from 3.73% the prior month. Almost 30% of components rose at faster 10% rate, the August data showed. 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 up in underlying inflation with the month-over-month figure increasing 0.7% in August, up from 0.3% in July. The year-over-year figure moved up to 5.8% from 5.4%. Atlanta Fed research director David Altig last week pointed to the Dallas Fed trimmed mean and the Cleveland median as signs that inflation isn't mitigating yet.