Note that inflation in chart 2 is measured by the consumer price index; inflation measured by this index is close to but on average slightly higher than inflation as measured by the price index for personal consumption expenditures, the measure to which the Federal Open Market Committee’s 2 percent inflation objective refers.
2  For example, this decomposition as estimated based on expectations as reported in the Blue Chip Financial Forecasts gives broadly similar results, as do many standard term structure models. 3  See Statement on Longer-Run Goals and Monetary Policy Strategy, as amended effective on January 29, 2013, at www.federalreserve.gov/monetarypolicy/files/FOMC_LongerRunGoals.pdf.