-2are now growing around 3 percent, the highest level since the crisis. These are welcome developments.
While the most recent reading on core personal consumption expenditures, or PCE, inflation ticked down, indicators of underlying trend inflation remain encouraging overall, providing little signal of an outbreak of inflation to the upside, on the one hand, and reassurance that underlying trend inflation may be close to our target of 2 percent, on the other (figure 1).