Cleveland FED's CPI data
How is it different from standard CPI?
The Cleveland Fed's CPI data differs from standard CPI measures in several key ways:
Frequency: While standard CPI is typically reported monthly, the Cleveland Fed's nowcasts are updated daily, offering more timely inflation insights.
Nowcasting: “Nowcasts” are estimates or forecasts of the present. The Cleveland Fed offers daily "nowcasts" of inflation for both the PCE and CPI, providing estimates of current inflation before official data is released.
Median CPI: The Cleveland Fed calculates a Median CPI, which focuses on the price change at the 50th percentile of the distribution of price changes. This method aims to provide a better measure of underlying inflation trends by reducing the impact of extreme price fluctuations.
16% Trimmed-Mean CPI: In addition to the Median CPI, the Cleveland Fed computes a 16% trimmed-mean CPI. This measure excludes the top and bottom 8% of price changes, providing a more stable inflation indicator.
Focus on Core Inflation: These alternative measures aim …