FATT - Is Inflation Below The Fed's Target? Yes And No

• The most recent data from the Bureau of Labor Statistics show that CPI rose by 5.0 percent over the past 12 months. This is the highest rate of inflation since before the 2008 financial crisis.
• Swings in the price of oil are why many economists rely on “core” rates of inflation, which exclude volatile food and energy prices. But even the core rate of CPI inflation was 3.8 percent, almost double the 2 percent average targeted by the Fed.
• What is causing the recent changes in the CPI? Should consumers be worried? How should the Fed respond?

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