Dallas Fed Trimmed Mean PCE Rises to 2.8% as Apple Price Hikes Signal Broader Cost Pressure
Updated
Updated · investinglive.com · Jun 25
Dallas Fed Trimmed Mean PCE Rises to 2.8% as Apple Price Hikes Signal Broader Cost Pressure
1 articles · Updated · investinglive.com · Jun 25
Summary
The Dallas Fed’s trimmed mean PCE index rose to 2.8% year over year in May from 2.4%, indicating underlying U.S. inflation accelerated rather than cooled toward the Fed’s target.
Broader PCE gauges were hotter still: headline PCE ran at 4.1% on a 12-month basis and 5.5% annualized over one month, while core PCE excluding food and energy was 3.4% year over year.
Apple’s significant product price increases tied to memory-chip costs point to a new inflation channel from the AI capital-spending boom, suggesting consumer goods using constrained components could get more expensive.
May’s biggest upward drivers were concentrated in gasoline, financial service charges, airfares and appliances, with gasoline up at a 121.3% annualized pace; tariffs, oil and strong markets were cited as key pressures.
Housing remained a concern, with most components rising 3% to 5% despite a sluggish home market, raising the risk of stickier inflation if the housing cycle turns higher.