But as you know, the FOMC often looks at core inflation, stripping out the effects of energy and food prices, as a better indicator of future price behavior. The dotted line represents the rule prescriptions based on the chain-weighted core CPI, which the Bureau of Labor Statistics has produced since 2000.
As described in the Monetary Policy Report, supply constraints have been restraining activity in some industries, most notably in the motor vehicle industry, where the worldwide shortage of semiconductors has sharply curtailed production so far this year. Conditions in the labor market have continued to improve, but there is still a long way to go.