Dallas Fed May PCE price index +1.4% m/m annualized vs +2.7% priorThe 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% prior
- 12-month 2.8% vs 2.9% prior
Digging through the numbers, some drivers of inflation:
- Prescription drugs
- Tobacco
- Spectator sports
- Hospitals
- Used trucks
Some drivers of disinflation:
- Computer software and accessories
- Gasoline
- Air transport
- Financial services fees
- Women'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.
Source: Dallas Fed May PCE price index +1.4% m/m annualized vs +2.7% prior (https://www.forexlive.com/news/dallas-fed-may-pce-price-index-14-mm-annualized-vs-27-prior-20240628/)
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