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Dallas Fed Releases Trimmed Mean PCE Inflation Data
The Federal Reserve Bank of Dallas has issued its latest trimmed mean PCE price index figures, offering a comparative perspective against the government’s broader PCE price indexes. The data, presented at an annual rate, provides insights into inflation trends. Key findings from the Dallas Fed’s analysis are detailed below.
One-Month Inflation Rate
Analyzing the one-month changes, the data reveals the following annual rates:
- PCE: Currently at 4.0% for February ’25, slightly down from 4.1% in January ’25, and up from 3.6% in December ’24.
- Core PCE: Increased to 4.5% in February ’25 from 3.6% in January ’25, which was higher than the 2.6% recorded in December ’24.
- Trimmed Mean PCE: Registered at 3.0% for February ’25, a rise from 2.5% in January ’25, and consistent with 3.0% in December ’24.
Six-Month Inflation Rate
Examining the six-month trends, the annual rates are as follows:
- PCE: Showed an increase to 3.1% in February ’25 from 2.6% in January ’25 and 2.3% in December ’24.
- Core PCE: Advanced to 3.1% in February ’25, compared to 2.7% in January ’25 and 2.4% in December ’24.
- Trimmed Mean PCE: Modestly increased to 2.7% in February ’25, from 2.6% in January ’25 and 2.5% in December ’24.
Twelve-Month Inflation Rate
Looking at the twelve-month perspective, the data indicates:
- PCE: Remained stable at 2.5% in February ’25, matching January ’25, and slightly below 2.6% in December ’24.
- Core PCE: Increased to 2.8% in February ’25 from 2.7% in January ’25, and down from 2.9% in December ’24.
- Trimmed Mean PCE: Decreased to 2.6% in February ’25, consistent with January ’25, and down from 2.8% in December ’24.
Understanding the Trimmed Mean PCE Index
The Dallas Fed’s trimmed mean PCE price index serves as a core inflation metric. It is derived from the Commerce Department’s personal consumption expenditures price index, but it excludes items with unusually large price fluctuations in any given month. This methodology aims to provide a clearer picture of underlying inflation pressures by reducing the impact of volatile price movements. The Dallas Fed initiated the publication of this measure in August 2005.