The Economy & the Fed

Seasonal Adjustment

A statistical correction that removes the patterns that repeat every year, such as holiday shopping, summer travel or winter heating bills, so that one month can be fairly compared with the month before. Monthly changes are usually reported seasonally adjusted. Year-over-year changes compare a month with the same month a year earlier, so the seasons already line up, and inflation’s 12-month rate is reported without adjustment.

Educational information, not investment advice. See it applied across the screener →