Looking at annual price changes across all CPI items less fresh food, the share of price-increasing items minus the share of price-decreasing items has continued on a moderate declining trend, although it remains in positive territory.
Third, with lower inflation, we anticipated that the economy would function more efficiently and without the sharp fluctuations caused by inflationary booms and subsequent recessions.6 What has the outcome been thus far? Chart 1 shows the rate of inflation over the period of inflation targets.