U.S. Trimmed Mean PCE Hits 2.41% as Core PCE Outruns Broader May Inflation
Updated
Updated · continuumeconomics.com · Jun 26
U.S. Trimmed Mean PCE Hits 2.41% as Core PCE Outruns Broader May Inflation
2 articles · Updated · continuumeconomics.com · Jun 26
Summary
The Dallas Fed’s trimmed mean PCE rose to 2.41% year over year in May from 2.34% in April, showing only a modest pickup even as broader inflation gauges firmed.
Core PCE accelerated more sharply to 3.4% year over year, suggesting May’s inflation rebound was relatively narrow rather than broad-based.
The trimmed mean’s one-month annualized pace reached 2.78% and its six-month rate 2.49%—an eight-month high—but both remained below levels that would signal a stronger reacceleration.
The Cleveland Fed’s median PCE told a similar story: the monthly gain rose to 0.29%, while the yearly rate edged up to 2.82% from 2.76% and stayed below 3.0% for a seventh straight month.
That split leaves Fed officials weighing whether the hotter core PCE reading marks a lasting inflation turn or a narrower burst not yet confirmed by underlying measures.