In July, the Federal Reserve Bank of New York's core inflation measure showed an uptick after experiencing a decline over the previous five months, mainly due to the services excluding housing component.
The Multivariate Core Trend (MCT) inflation rate increased to 2.5% in July, up from a revised 2.2% in June, which was initially reported as 2.1%, the New York Fed reported.
The MCT model gauges the persistence of inflation across seventeen core sectors included in the personal consumption expenditures (PCE) price index.
The core PCE inflation, recognized as the Federal Reserve's preferred inflation measure, remained steady at 2.6% in July.
Housing contributed 0.22 percentage points to the increase in the MCT estimate compared to its pre-pandemic average, according to the New York Fed.
Furthermore, services excluding housing accounted for a 0.39 percentage point increase, while core goods had a slight positive impact of 0.05 percentage points.
"The persistence of inflation continues to be predominantly influenced by the sector-specific component of services excluding housing," the New York Fed stated.
