Cleveland Fed: Key Measures Show Inflation Above 2% YoY in July, Core PCE below 2%
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 0.3% (3.4% annualized rate) in July. The 16% trimmed-mean Consumer Price Index also rose 0.3% (3.3% 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 July here. Motor fuel was up 34% annualized.
Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers rose 0.3% (4.1% annualized rate) in July. The CPI less food and energy also rose 0.3% (3.6% annualized rate) on a seasonally adjusted basis.
Click on graph for larger image.
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 2.9%, the trimmed-mean CPI rose 2.2%, and the CPI less food and energy rose 2.2%. Core PCE is for June and increased 1.6% year-over-year.
On a monthly basis, median CPI was at 3.4% annualized, trimmed-mean CPI was at 3.3% annualized, and core CPI was at 3.6% annualized.
Overall, these measures are mostly above the Fed's 2% target (Core PCE is below 2%).