Median PCE Inflation
- Description: We calculate the median PCE inflation rate based on data released in the Bureau of Economic Analysis’ monthly Personal Income and Outlays report.
- Median PCE inflation is the one-month inflation rate of the component whose expenditure weight is in the 50th percentile of price changes.
- Benefits: By omitting outliers (small and large price changes) and focusing on the interior of the distribution of price changes, the median PCE inflation rate can provide a better signal of the underlying inflation trend than either the all-items PCE price index or the PCE price index excluding food and energy (also known as the core PCE price index).
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|Median PCE Inflation||0.4||0.2||0.4||0.6||0.7||0.3|
|Core PCE Inflation||0.3||0.3||0.3||0.4||0.6||0.1|
|Median PCE Inflation||4.1||4.1||4.4||4.7||5.2||5.2|
|Core PCE Inflation||5.3||5.2||4.9||4.7||4.8||4.6|