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The Fed has a target of 2 percent of average inflation, so a long ways to go.
by not_the_fda 4y ago
The Fed has a target of 2 percent of average inflation, so a long ways to go.
- ajross 4y agoInflation is a year-over-year measurement, not a ladder. Signal in the previous year matters too. If aggregate prices in the economy come down 1.085/1.02 ~= 6.4% from wherever they were a year ago, we're back at baseline. Within a few months the year-old number will start showing some of the elevated prices from last fall. I don't know that anyone necessarily expects to hit 2% exactly, but we'll very likely be looking at "normal" numbers again by the end of the year. Which is exactly what all the folks trying to point out that this was a transitory effect have been trying to say, repeatedly, only to be shouted down by the inflatocaplyse cheerleaders. (FWIW: if prices continue to come down as rapidly as they did this month, the "recession" is likely going to turn out to be a phantom too.)