Inflation Measures Exceed Core PCE Targets, According to Federal Reserve Dashboard

The Federal Reserve Bank of Atlanta's Underlying Inflation Dashboard is a tool used to track inflation and its underlying trends. It provides a measure of underlying inflation, which is more than 0.50 percentage points above the target based on core PCE (Personal Consumption Expenditures) inflation. This target is set at 2% plus the average difference between each measure and core PCE inflation over the past decade.

The dashboard includes nine data series, all of which are monthly, with updates twice a month after the release of CPI inflation data and the Personal Income and Outlays report. The dashboard also reports on the means, medians, and 25th and 75th percentiles of the one-month growth rates for each measure.

The measures used in the dashboard are based on their relationship to core PCE inflation, with targets set at 2% plus their average difference with core PCE inflation over the past decade. For example, the growth rate in the core CPI is 30 basis points higher than that of the core PCE, yielding a price stability target of 2.3 percent.