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Inflation may soon sink back below 2% target, San Francisco Fed says
There’s a good chance that a key inflation measure could soon fall back below Fed’s 2% target, according to new research published Monday by the Federal Reserve Bank of San Francisco. The so-called core measure of inflation, which strips out relatively volatile energy and food prices, finally hit the Fed’s 2% target in July after being persistently below that mark for years following the Great Recession. But a close examination of the cause for the run-up shows it was not due to the strengthening economy but to idiosyncratic, or “acyclical” factors excluding health care, according to a paper from San ... (full story)