Gaining some traction is the Atlanta Fed sticky price consumer price index. The Atlanta Fed Sticky Price Index measures the inflation rate of goods and services whose prices change relatively infrequently, making them “sticky” in response to market conditions.
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Purpose: It helps identify underlying, more persistent inflation trends by filtering out the “noise” from volatile items that change prices often (like gasoline or fresh food).
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Components: Includes items such as rent, medical services, and certain utilities—prices that tend to adjust slowly.
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Use: Economists and policymakers watch the Sticky Price Index because it can better reflect long-term inflation pressures and expectations compared to the overall CPI.
The Atlanta Fed’s sticky-price consumer price index (CPI)—a weighted basket of items that change price relatively slowly—rose 4.6 percent (on an annualized basis) in July, following a 4.3 percent increase in June. On a year-over-year basis, the series is up 3.4 percent.
On a core basis (excluding food and energy), the sticky-price index rose 4.8 percent (annualized) in July, and its 12-month percent change was 3.4 percent.
The flexible cut of the CPI—a weighted basket of items that change price relatively frequently—decreased 3.8 percent (annualized) in July and on a year-over-year basis, the series is up 0.8 percent.
There is a debate on where inflation is going. This measure is showing an clear upward trend.