This points to a broadening of inflationary pressures. Decomposing core inflation reveals a wide gap between core goods and services inflation, with the former sharply higher, largely reflecting imported inflation, while services price increases have remained relatively well contained. The trajectory of inflation expectations also provides evidence of potential second-round effects.
During the period of the Great Moderation, from the 1990s up until about 2007, the academic literature on macroeconomics had developed a very streamlined view of what central banks should be doing.