August 2012

The trimmed mean PCE inflation rate is an alternative measure of core inflation in the price index for personal consumption expenditures (PCE). It is calculated by staff at the Dallas Fed, using data from the Bureau of Economic Analysis (BEA).

• Series description

The trimmed mean PCE inflation rate for August was an annualized 2.0 percent. According to the BEA, the overall PCE inflation rate for August was 5.3 percent, annualized, while the inflation rate for PCE excluding food and energy was 1.3 percent.

The tables below present data on the trimmed mean PCE inflation rate and, for comparison, the overall PCE inflation and the inflation rate for PCE excluding food and energy. The tables give annualized one-month, six-month and 12-month inflation rates.

• Components included and excluded from this month's Trimmed Mean

The following chart plots the evolution of the distribution of price increases in the monthly component data over the past year. The chart shows the percentage of components each month, weighted by their shares in total spending, for which prices grew between 0 and 2 percent (at an annual rate); between 2 and 3 percent; between 3 and 5 percent; between 5 and 10 percent; and more than 10 percent.

• Chart data

Data

• Historical data
• Historical data prior to the 2009 revision (DISCONTINUED)

Related Publications and Resources

• "A Fitter, Trimmer Core Inflation Measure" by Jim Dolmas, Federal Reserve Bank of Dallas Southwest Economy, May/June 2005
  
• “Trimmed Mean PCE Inflation” by Jim Dolmas, Federal Reserve Bank of Dallas Research Department Working Paper 0506, provides a more detailed look at the methodology behind the trimmed mean inflation rate.
  
• The Cleveland Fed’s median CPI is a forerunner and close relative of the trimmed mean PCE inflation rate.

2012 Release Dates

• August 3*
• August 30
• September 28
• October 29
• November 30
• December 21

*This release incorporates the BEA's annual revision. While the indexes for overall PCE and PCE excluding food and energy will be available from BEA July 31, the underlying data needed to calculate the trimmed mean will not be available until August 3.