- Prior was +0.2% m/m
- 16% trimmed mean CPI +0.2% vs 0.0% prior
On a 12-month basis:
- Median CPI 2.7% vs 2.7% prior
- 16% trimmed-mean 2.6% vs 2.6% prior
Here is the Cleveland Fed’s description of what they’re doing:
A number of measures have been developed to measure underlying
inflation. The CPI excluding food and energy prices (core CPI) removes
price changes of the same items from the CPI each month—namely, food and
energy prices—because they are typically the most volatile. The median
CPI and the trimmed-mean CPI use a different approach. These measures
exclude the smallest and largest price changes during the month, so the
items excluded from the CPI change from month to month. The median CPI
excludes all price changes except for the one in the center of the
distribution of price changes, where the price changes are ranked from
lowest to highest (or most negative to most positive). The 16 percent
trimmed-mean CPI excludes price changes in specified upper and lower
tails of the distribution.
According to research from the Cleveland Fed, the median CPI provides
a better signal of the underlying inflation trend than either the
all-items CPI or the CPI excluding food and energy. The median CPI is
even better at forecasting PCE inflation in the near and longer term
than the core PCE price index.
These numbers are a tad more inflationary than the headlines but certainly not anything alarming. THe US dollar hs recouped its earlier declines.
This article was written by Adam Button at investinglive.com.
