Dallas Fed Trimmed Mean PCE at 4.0% in May

The Dallas Fed’s Trimmed Mean PCE inflation rate increased to 4.0% y/y in May, up from 3.58% in April.

This compares with May headline inflation of 8.5% and the Fed’s preferred PCE measure of 6.3%.

The Trimmed Mean PCE inflation rate is an alternative measure of core inflation in the price index for PCE calculated by the Dallas Fed using data from the BEA.