The Dallas Fed Trimmed Mean PCE price index was releases and it came in at +1.4% vs 2.7% last month.
That is much lower than the headline PCE which came in at 3.7% and the core PCE at 3.3%. it is also the lowest level going back to 2020
That is good news. What is the difference between the Trimmed Mean PCE and headline PCE seen earlier? The Dallas Fed Trimmed Mean PCE Inflation Rate is an alternative measure of inflation designed to filter out the “noise” from unusually large price moves and provide a better picture of the underlying inflation trend.
Here’s how it works: Starts with the same data as the Fed’s preferred inflation gauge — the Personal Consumption Expenditures (PCE) Price Index. Instead of removing fixed categories (like food and energy in Core PCE), it removes the most extreme price increases and decreases each month, regardless of what category they come from. After trimming those outliers, it calculates the inflation rate from the remaining components.