MNI BRIEF: NY Fed MCT Inflation Measure Lowest In Nearly 3 Yrs
Further evidence that underlying prices pressures are cooling in NY Fed's most recent update.
The Federal Reserve's inflation fight is moving in the right direction as one measure of underlying trend price pressures decreased to the lowest level since January of 2021.
The October Multivariate Core Trend (MCT) reading stood at 2.60%, down from September’s 2.88%. That compares with a PCE price index year-over-year reading of 3.0% in October, and core PCE reading of 3.5%. The Fed’s inflation target is 2%. (See: MNI POLICY: Fed Sees Trend Inflation Edging Closer To 2% Goal)
"The increase in the MCT estimate relative to its pre-pandemic average is in large part due to the sector-specific trends in housing and services ex-housing, while the common trend component across the three sector aggregates accounts for 0.33 ppt," New York Fed economists wrote.
Source: New York Fed