There are various ways to measure inflation including the headline CPI, as below:
- CPI or Headline Inflation=0%
- Core CPI=1.8%
- Cleveland Median CPI=2.3%
- Sticky Price CPI by Atlanta Fed=2.2%
- Dallas Fed Trimmed Mean Personal Consumption Expenditures (PCE) preferred by FOMC=1.7%
These are year over year numbers. Hence, despite the decline in commodity prices the Fed believes that inflation is heading towards its 2% target.
