The Economy & the Fed

Trimmed-Mean Inflation

A measure of underlying inflation published by the Federal Reserve Bank of Dallas. Each month it ranks the price changes of about 180 kinds of consumer spending in the PCE price index, cuts off the most extreme rises and falls at both ends, and averages what is left. Unlike core inflation, which always removes food and energy, it removes whatever happened to be extreme that month. When it sits close to core, a report’s move is broad; when it differs, a few unusual prices are doing the work.

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