This is typically what we have in mind when we think about trend inflation. In this world, inflation is meeting the FOMC’s 2 percent target and there is no need for a policy change. Now consider a world in which there are sharp price changes that are staggered across the goods.
In year 1, the price of good A goes up 5 percent, while the price of goods B and C increase 2 percent. If we assume equal weights for each good, the inflation rate for this economy is 3 percent. This repeats in year 2, with the price of good B increasing 5 percent while the other two have increases of 2 percent.