- Median inflation +3.3% y/y vs +3.3% prior
If you don’t know what it is, median PCE inflation is the one-month inflation rate of the component whose expenditure weight is in the 50th percentile of price changes.
According to the Cleveland Fed:
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).
It’s been slower to come down but it’s tracking the drop in PCE.
Median PCE