The Dallas and Cleveland PCE remix data illustrates why Fed officials and markets are feeling better about the pricing picture.
One month annualized trimmed mean 1.4% vs 2.7% prior (lowest this year)Six month annualized 3.0% vs 3.1% prior12-month 2.8% vs 2.9% prior
Digging through the numbers, some drivers of inflation:
Prescription drugsTobaccoSpectator sportsHospitalsUsed trucks
Some drivers of disinflation:
Computer software and accessoriesGasolineAir transportFinancial services feesWomen’s and girls clothing
One thing that wasn’t trimmed out was rent, which was up 4.8% annualized and still remains a problematic part of the inflation picture.
This article was written by Adam Button at www.forexlive.com.
