by Bill McBride on 1/16/2015 01:22:00 PM
Friday, January 16, 2015
The Cleveland Fed released the median CPI and the trimmed-mean CPI this morning:
According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.2% (2.1% annualized rate) in December. The 16% trimmed-mean Consumer Price Index rose 0.1% (1.2% annualized rate) during the month. The median CPI and 16% trimmed-mean CPI are measures of core inflation calculated by the Federal Reserve Bank of Cleveland based on data released in the Bureau of Labor Statistics’ (BLS) monthly CPI report.Note: The Cleveland Fed has the median CPI details for December here. Motor fuel declined at a 69% annualized rate in December, following a 55% annualized rate decline in November, and a 31% annualized rate decline in October!
Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers fell 0.4% (-4.4% annualized rate) in December. The CPI less food and energy was unchanged (0.0% annualized rate) on a seasonally adjusted basis.
Click on graph for larger image.
This graph shows the year-over-year change for these four key measures of inflation. On a year-over-year basis, the median CPI rose 2.2%, the trimmed-mean CPI rose 1.8%, and the CPI less food and energy rose 1.6%. Core PCE is for November and increased 1.4% year-over-year.
On a monthly basis, median CPI was at 2.1% annualized, trimmed-mean CPI was at 1.2% annualized, and core CPI was unchanged annualized.
On a year-over-year basis these measures suggest inflation remains below the Fed's target of 2% (median CPI is close to 2%).
Posted by Bill McBride on 1/16/2015 01:22:00 PM