Trueflation, an alternative measure of inflation that differs from what the Federal government may publish, states that the Personal Consumption Expenditures (PCE )is now below 1.9%, significantly lower than the US Federal Reserve’s target of 2% and well below the US Bureau of Labor Statistics (BLS) data.
The PCE price index is the Federal Reserve’s preferred measure for tracking inflation. The PCE provides a broader view of consumer activity and can respond more rapidly to changes in buying habits. The core PCE excludes food and energy.
Trueflation’s US Inflation Index is also showing a declining percentage, now at 2.05%, compared to the BLS’s 2.7%.
Trueflation is a firm that says it aggregates 35 million data points from over 70 providers each day. The company positions itself as providing greater clarity of inflation in advance of official BLS releases. Users of the data may benefit from the perspective if Trueflation’s information is accurate.
President Donald Trump has railed against the US Federal Reserve’s slow response in lowering benchmark interest rates, which may impact consumer spending and economic activity. The President has slammed the current Fed Chairman Jerome Powell, at times threatening to fire the Chair.
With a new Fed Chair expected to be announced soon and Chair Powell’s tenure ending in the coming months, expectations are for the President to select an individual who more closely aligns with his view that rates must move lower.
At the same time, some critics have lambasted the President for challenging the Fed’s independence, which is supposed to shield it from the partisan politics that is endemic in Washington, DC.