| The trimmed mean
PCE inflation rate is an alternative measure
of core inflation in the price index for
Personal Consumption Expenditures (PCE).
It is calculated by staff at the Dallas
Fed, using data from the Bureau of Economic
Analysis (BEA). |
|
May 2009
The trimmed mean PCE inflation
rate for May was an annualized 1.3 percent. According
to the BEA, the overall PCE inflation rate for May
was 0.7 percent, annualized, while the inflation rate
for PCE excluding food and energy was 1.1 percent.
The tables below present data
on the trimmed mean PCE inflation rate and, for comparison,
the overall PCE inflation and the inflation rate for
PCE excluding food and energy. The tables give annualized
one-month, six-month and 12-month inflation rates.
| One-month PCE inflation, annual
rate |
| |
Dec-08 |
Jan-09 |
Feb-09 |
Mar-09 |
Apr-09 |
May-09 |
| PCE |
-5.9 |
3.0 |
4.3 |
-0.3 |
0.9 |
0.7 |
| PCE excluding food
& energy |
-0.1 |
2.2 |
2.9 |
2.2 |
3.3 |
1.1 |
| Trimmed mean
PCE |
0.9 |
3.1 |
2.6 |
1.1 |
1.8 |
1.3 |
|
| Six-month PCE inflation, annual
rate |
| |
Dec-08 |
Jan-09 |
Feb-09 |
Mar-09 |
Apr-09 |
May-09 |
| PCE |
-2.7 |
-3.3 |
-2.6 |
-2.8 |
-1.9 |
0.4 |
| PCE excluding food
& energy |
1.2 |
1.2 |
1.3 |
1.4 |
1.8 |
2.0 |
| Trimmed mean
PCE |
2.1 |
2.0 |
2.1 |
1.9 |
2.0 |
1.8 |
|
| 12-month PCE inflation |
| |
Dec-08 |
Jan-09 |
Feb-09 |
Mar-09 |
Apr-09 |
May-09 |
| PCE |
0.8 |
0.8 |
1.0 |
0.6 |
0.5 |
0.1 |
| PCE excluding food
& energy |
1.8 |
1.7 |
1.8 |
1.8 |
1.9 |
1.8 |
| Trimmed mean
PCE |
2.3 |
2.3 |
2.4 |
2.3 |
2.3 |
2.2 |
|
| NOTE: These data are subject
to revision |
The following chart plots the
evolution of the distribution of price increases in
the monthly component data over the past year. The chart
shows the percentage of components each month, weighted
by their shares in total spending, for which prices
grew between 0 and 2 percent (at an annual rate); between
2 and 3 percent; between 3 and 5 percent; between 5
and 10 percent; and more than 10 percent.
Next release: After August 4,
2009. (Note: The next Trimmed Mean PCE release will be delayed due to the BEA’s comprehensive revision to the National Income and Product Accounts. It is unclear at this time how long the delay will be.)
 |
| Links
Related Publications
and Resources
- "A
Fitter, Trimmer Core Inflation Measure"
by Jim Dolmas, Federal Reserve Bank of Dallas
Southwest Economy, May/June 2005
- “Trimmed
Mean PCE Inflation”
 by Jim Dolmas,
Federal Reserve Bank of Dallas Research Department
Working Paper 0506, provides a more detailed
look at the methodology behind the trimmed mean
inflation rate.
- The Cleveland
Fed’s median CPI
 is a forerunner
and close relative of the trimmed mean PCE inflation
rate.
2009
Release Dates
- After August 4, 2009 (see note)
- August 28, 2009
- October 1, 2009
- October 30, 2009
- November 25, 2009
- December 23, 2009
More Information
- To request additional data or for technical
questions, e-mail Jim Dolmas.
E-mail Alert
- Subscribe to the Trimmed
Mean PCE Inflation Rate e-mail alert to be notified
when the latest report is released.
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