The new inflation gauge the Fed is using shows prices are far from being controlled

The new measure of inflation that Federal Reserve officials have been using to guide their decisions indicates that price pressures are still a long way from being contained.<br><br>The gauge, dubbed the “trimmed mean PCE” inflation rate, tries to eliminate extreme price moves and gets closer to the underlying inflation dynamics. It shows that core services inflation, excluding rent and housing costs, accelerated at a 4.8% annualized rate in the three months through January, matching the quickest pace in data going back to 1995.