A New Measure of Inflation

The Cleveland Fed is out with a video promoting a new measure of price inflation, the Median CPI.



Since there is no harm in looking at inflation in different ways there is no reason to ignore this measure, but take it with the same size grains of salt that you should take all price inflation measures. You know your individual cost of living inflation better than anyone. As for these othe measures, the key is to watch them all, and notice if one is trending different then the others, and then find out why.

So what's the current Median CPI showing. Here's the Cleveland Fed:

According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index was virtually unchanged at 0.0% (0.5% annualized rate) in September. The 16% trimmed-mean Consumer Price Index rose 0.1% (1.3% annualized rate) during the month. The median CPI and 16% trimmed-mean CPI are measures of core inflation calculated by the Federal Reserve Bank of Cleveland based on data released in the Bureau of Labor Statistics' (BLS) monthly CPI report.

Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers was increased 0.2% (2.0% annualized rate) in September. The CPI less food and energy rose 0.2% (2.0% annualized rate) on a seasonally adjusted basis

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