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Dallas Fed trimmed-mean PCE slows to 1.4%, lowest since 2020

The trimmed-mean measure is designed to smooth out unusually large price moves, contrasting with headline PCE at 3.7% and core PCE at 3.3%.

Reported · Written up by our desk · Inflation

Forexlive reports that the Dallas Fed trimmed-mean PCE price index rose 1.4% versus 2.7% in May, marking the lowest reading going back to 2020.

The trimmed-mean PCE is an alternative inflation measure that aims to filter out “noise” from unusually large price changes to better reflect the underlying trend, the outlet said.

Forexlive also noted the gap versus headline and core inflation, with headline PCE at 3.7% and core PCE at 3.3%.

The data was described as encouraging for the inflation outlook, but Forexlive said market impact will likely depend on whether the slowdown continues, as Dallas Fed discussions emphasized the need for more evidence when choosing the best gauge for policy.

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