The revised Dallas and Cleveland PCE data illustrate why Fed officials and markets are feeling better about the pricing picture.
- The one-month annual average is 1.4% versus 2.7% previously (lowest this year)
- 3.0% annually over six months, compared to 3.1% previously
- 12 months 2.8% compared to 2.9% previously
Looking at the numbers, some of the causes of inflation:
- Prescribed medication
- Tobacco
- Spectator sports
- Hospitals
- Used trucks
Some causes of shrinkage:
- Computer software and accessories
- gasoline
- Air transport
- Financial services fees
- Women’s and girls’ clothing
The only thing that hasn’t been cut is rent, which has risen by 4.8% a year and is still part of the inflation picture.