The Wall Street Journal, February 13, 2023, Inflation Is Falling, and Where It Lands Depends on These Three Things
The end of distressingly high inflation is coming into view. Consumer prices gained 6.5% in December, down from June’s 9.1% annual rate, the highest since 1981. There is good reason to think inflation will keep falling, Federal Reserve Chairman Jerome Powell said earlier this month.
“The process of getting inflation down has begun,” Mr. Powell said at the Economic Club of Washington, D.C.
Even so, inflation is far above the Fed’s 2% target. Even excluding the volatile food and energy categories, core inflation was 5.7% in December. So how does it fall all the way back to 2%?
