Key Measures Show Inflation increased YoY in May
The Cleveland Fed released the median CPI and the trimmed-mean CPI this morning:
According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.2% (2.8% annualized rate) in May. The 16% trimmed-mean Consumer Price Index also rose 0.2% (2.1% annualized rate) during the month. The median CPI and 16% trimmed-mean CPI are measures of core inflation calculated by the Federal Reserve Bank of Cleveland based on data released in the Bureau of Labor Statistics' (BLS) monthly CPI report.Note: The Cleveland Fed released the median CPI details for May here. Motor fuel was up 23% annualized in May.
Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers rose 0.2% (2.5% annualized rate) in May. The CPI less food and energy rose 0.2% (2.1% annualized rate) on a seasonally adjusted basis.
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This graph shows the year-over-year change for these four key measures of inflation. On a year-over-year basis, the median CPI rose 2.7%, the trimmed-mean CPI rose 2.0%, and the CPI less food and energy rose 2.2%. Core PCE is for April and increased 1.8% year-over-year.
On a monthly basis, median CPI was at 2.8% annualized, trimmed-mean CPI was at 2.1% annualized, and core CPI was at 2.1% annualized.
Using these measures, inflation increased year-over-year in May. Overall, these measures are close to the Fed's 2% target.