April Dallas Fed trimmed mean +2.4% annualized vs +2.2% prior

The Fed watches this closely

This index strips out the more-volatile numbers in PCE inflation and then annualizes monthly numbers. The number is above 2% but it’s well-below the +7% monthly numbers (annualized) we’ve seen in core PCE.

A number like this is why the Fed believes that inflation will be transitory. Once you strip out something like used cars, price rises start to look more modest.

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