The Key to Core PCE Inflation

The key to getting inflation down there is to have a continuing loosening and labor market conditions which we have seen. In fact I think any forecast that people are making right now about inflation coming down this year will contain a good amount of disinflation from that source. That leaves the big sector which is a little more than half of the core PC inflation that's not housing services and we see only the earliest signs ofdisinflation there.