Dollars and Jens
Friday, March 27, 2009
The Dallas Fed's trimmed-mean PCE inflation rate is out for February. Note that it's been doing what a core inflation measure should be doing: over longish time periods it tracks the overall inflation measure, while for shorter time periods it's much less volatile. (Ideally it should be a decent predictor of inflation in the future.)

It's worth noting that the trimmed-mean PCE has only had one reading below 1.48 in the last five years (which was two months ago); it's not providing any confirmation of other possible signs of deflation.

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