No single measure of underlying inflation is perfect, but it is notable that these measures have exhibited a remarkably consistent pattern since the onset of the recession: All show the underlying inflation rate declining markedly to a level somewhat below the rate of 2 percent or a bit less that FOMC participants consider to be consistent with the Fed’s dual mandate.
For example, core PCE price inflation stood at less than 1 percent over the 12 months ending in February, down from 2–1/2 percent over the year prior to the recession. Trimmedmean measures of inflation have also trended down over the past couple of years and are now close to 1 percent.