It has drifted downward over the past year to about 0.9 percent in November. Core PCE, a measure that removes food and energy prices that tend to be volatile, was a bit higher at 1.1 percent. I believe we must defend our 2-percent inflation target from below and above.
Where we were in 2011 In the run-up to the 2011 renewal, the Bank focused its research on three questions: whether to adopt a lower inflation target; whether to move to price-level targeting; and how monetary policy should take account of financial stability considerations. These questions were not new. But the global financial crisis cast them in a different light.