Separating signal from noise in inflation data is one of the Federal Reserve’s biggest challenges as the U.S. economy reopens, and the Dallas Fed has some suggestions on how to go about it.
The bank said in a research note Thursday that one way to better understand inflation right now is by averaging the trend of consumer-level price pressures, as opposed to the more common approach of looking at changes from the prior month and from a year earlier.
Averaging…
