Year-on-Year PCE inflation (3.2% in November) is a standard; here’s instantaneous headline and core for comparison (and trimmed mean y/y through October):(Click on image to enlarge) Figure 1: Core PCE inflation, y/y (bold black), instantaneous (T=12,a=4) headline PCE inflation (light blue), instantaneous core PCE (red), both per , trimmed mean y/y (light green), all at annual rates. Source: BEA via FRED, Dallas Fed, and author’s calculations. As others have noted, PCE and core PCE are at 2% and 1.9% 6 month annualized inflation are at or below target 2%. As Figure 1 shows, Instantaneous measures which upweights recent m/m inflation and downweights older inflation is below 2%.More By This Author:Business Cycle Indicators with November EmploymentDoes The Fed Deserve Credit For The Disinflation? Dispersion In GDP Q3 Tracking
PCE Inflation: Instantaneous Below Target
