Year-on-Year PCE inflation (3.2% in November) is a standard; here’s instantaneous headline and core for comparison (and trimmed mean y/y through October):
Figure 1: Core PCE inflation, y/y (bold black), instantaneous (T=12,a=4) headline PCE inflation (light blue), instantaneous core PCE (red), both per Eeckhout (2023), trimmed mean y/y (light green), all at annual rates. Source: BEA via FRED, Dallas Fed, and author’s calculations.Â
As others have noted, PCE and core PCE are at 2% and 1.9% 6 month annualized inflation are at or below target 2%. As Figure 1 shows, Instantaneous measures which upweights recent m/m inflation and downweights older inflation is below 2%.
I noticed Justin wolfers has said on an annualised basis ( that must give cheer to Chinny) it has been below 2% for the past 6 months.
Merry Christmas everyone.
Where did I see someone claiming that inflation had come down only recently? Oh yea – Faux News.
Until you make it snow in Sydney and Melbourne you’re deadweight on this whole holiday.
No snow it is banned.
Mind you so are assault weapons. Thank the Lord for that
https://www.vox.com/2015/8/27/9212725/australia-buyback
You’ll be sorry when the kangaroo population surges out of control.
A bit late for this post of Menzie’s, but does add perspective from non-economists.
https://www.yahoo.com/finance/news/inflation-nearly-back-normal-high-113025422.html
Happy New Year!
“Inflation is nearly back to normal. But high prices have changed Americans’ lives”
Ah yes – Bruce Hall finds a dumbass title that makes Art Laffer look good by comparison. Dude – we are not going back to the 1/2021 price level as deflation is a horrific idea. Get over it. After all – nominal income has risen by more than that 3-year price level increase.
And BTW – inflation is NOT 6.5%. But of course little Brucie was ordered by Kelly Anne Conway to dig up a dumbass article that said so.
Hey Brucie boy – your New Year’s Resolution might be to be honest for a change. Of course you’d break that resolution in less than a week.
Hey, Happy New Year, pgl. Here I thought you’d be ecstatic having CNN, your favorite source of authoritative news, cited for you by yours truly. And now you are trashing CNN? Wow, that’s so sad. They have such few friends left.
But I don’t take it personally because, well, it is you.