Warsh cites that 54% of PCE components showed above 3% inflation over 12 months and 49% over 6 months.
“ And he went further. Warsh gave examples of how he uses multiple measures of inflation to reach the conclusion that elevated prices are a concern. He referred to the underlying components of PCE inflation, saying 54% of components of PCE had been above 3% annualized inflation in the past 12 months, while 49% were above 3% in the past six months. Warsh described those figures as being lower than the recent pandemic inflation but still above the long-term trend — an indication he believes the Fed may need to raise rates. Warsh also referred to another gauge of inflation, the consumer price index , which is running at 3.4%. ”
Warsh cites Fed's preferred inflation measure at 3.7% over twelve months, above four percent over six months.
“The Fed's preferred measure of inflation, the one I talked about earlier, the twelve month change in the PC price index stands at 3.7%, with the six month change a little above four.”
Warsh reports PCE inflation at 3.7% over twelve months, above 4% over six months.
“The Fed's preferred measure of inflation, the one I talked about earlier, the twelve month change in the PC price index stands at 3.7%, with the six month change a little above four.”