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I use an Edge Insight and it does the same thing. The instantaneous MPG readout shows exactly what the car experiences in fine graduations. All the slight imperfections of the road, any declines and inclines, any wind, any steering corrections, just about anything can cause the car to fuel differently due to the constant variations that affect the car's progress. You can see the same thing with a vacuum gauge, especially those with 270-degree sweep dials.
As far as the other MPG values, they include an averaging factor which naturally changes more slowly.
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