by Calculated Risk on 2/19/2016 11:33:00 AM
Friday, February 19, 2016
Key Measures Show Inflation close to 2% in January
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% (2.9% annualized rate) in January. The 16% trimmed-mean Consumer Price Index also rose 0.2% (2.4% 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 January here. Motor fuel was down 44% annualized in January.
Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers was unchanged (0.3% annualized rate) in January. The CPI less food and energy rose 0.3% (3.6% 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 2.4%, the trimmed-mean CPI rose 2.0%, and the CPI less food and energy also rose 2.2%. Core PCE is for December and increased 1.4% year-over-year.
On a monthly basis, median CPI was at 2.9% annualized, trimmed-mean CPI was at 2.4% annualized, and core CPI was at 3.6% annualized.
On a year-over-year basis, three of these measures are at or above 2%.
Using these measures, inflation has been mostly moving up, and three of the measures are at or above the Fed's target (Core PCE is still way below).