Dallas Fed February trimmed mean PCE price index +3.4% vs +5.7% prior | Forexlive

The question here is: Do you take comfort in the step down from January or do you worry that core inflation is still above 3%?

• One month annualized trimmed mean 3.4% vs 5.7% prior
• Six month 3.1% vs 3.0% prior
• 12 month 3.1% vs 3.2% prior

One of the drivers of inflation (and a 5.15% weigh in the index) was a 1.4% m/m rise in ‘other purchased meals’, which highlights how tough it is to eat out.

Other notable components included:

• Physician services +1.8%
• Financial service charges, fees, and commissions +3.5%
• Nonprofit hospitals’ services to households +3.8%
• Government hospitals+3.8%
• Electricity +4.0%
• Motor vehicle maintenance and repair+4.8%
• Other purchased meals +4.1%
• Dental services +5.3%

Note the preponderance of rising health care costs.

Some sources of inflation trimmed out:

• Computer software and accessories +52.6%
• Shoes and other footwear +21.6%
• Net health insurance +15.5%
• Tenant-occupied stationary homes and landlord durables+5.7%