Alternative Fed inflation measures show cooling price pressure
Inflation easing signals point to cooler price pressures in Fed-tracked data. See why trimmed mean measures suggest inflation may be nearing the Fed’s goal.
New data suggest inflation is easing more than some headline measures imply, according to alternative indicators used by Federal Reserve economists.
Trimmed mean measures, which remove the most extreme price moves, show inflation at its lowest level in several years. The Dallas Fed’s June reading put the onemonth annualized rate at 1.4%, while its 12month rate fell to 2.2%, both near multiyear lows.
The report comes as Fed officials debate whether inflation has cooled enough to justify holding rates steady. Some policymakers remain skeptical, warning that inflation is still above the central bank’s 2% goal and may not yet be fully under control.