This particular data series which severely lags PCE and CPI-U is one of the Fed’s favorite data points for watching the trend of inflation. One may draw their own conclusions from the charts below.
Charts via the New York Federal Reserve:
Good, the trend started to, er, oops….
Even the data from the Fed screams embedded higher rates of inflation, aka, sticky. Which means this October meeting of the FOMC will only get spicier as the policy path Powell has apparently chosen embraces stagflation versus Main Street.
