An alternative measure of core inflation
The Dallas Fed trimmed mean PCE calculations is showing a dip inflation in September to 1.6% from 1.8% in August.
The trimmed mean PCE is an alternative to the core PCE released from the Bureau of Economic Analysis released this morning. That core reading came in at 1.7% in September.
Whether the trimmed mean or the BEAs core PCE, both are pointing to lower inflation. Adam had a great post on the FOMC and inflation earlier (CLICK HERE). He sees Powell's presser yesterday as a paradign shift in thinking toward deflation fear.
Core inflation did move above the 2% level in 2018, but the measure has been below the 2.0% since October 2018. Going back to 2010, inflatino has only had about 10 months above 2%. That is not a lot and highlights the fear of the Fed of a Japn style deflation.
