The rate of pass-through from commodity price increases to broad indexes of U.S. consumer prices has been quite low in recent decades, partly reflecting the relatively small weight of materials inputs in total production costs as well as the stability of longer-term inflation expectations. Currently, the cost pressures from higher commodity prices are also being offset by the stability in unit labor costs.
Thus, the most likely outcome is that the recent rise  3  The Survey of Professional Forecasters projects PCE inflation to run at about 1-1/2 percent in 2011 and to subsequently rise gradually to nearly 2 percent by 2013.