New York Fed’s Inflation Gauge Holds Steady At Over 2-Year Low: Is Threat In Rearview Mirror?

In a reassuring sign for investors and policymakers, a key inflation gauge measured by the Federal Reserve Bank of New York revealed that the Multivariate Core Trend (MCT) inflation rate was 2.8% in July, holding steady at from a downwardly revised level in June. This figure was the lowest level since January 2021, further indicating that COVID-19 pandemic-related price pressures are fading. Breaking Down the NumbersHousing accounted for 0.4 percentage point (ppt) of the increase in the MCT relative to its pre-pandemic average, while services ex-housing accounted for 0.48 ppt. Core goods had a…

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