Wrapping your arms around what’s happening with inflation can be tricky. For one, there are multiple measures. Also, some inflation measures are particularly sensitive to short-term factors. A potential solution to the latter issue is the Sticky Price Consumer Price Index (CPI). It’s calculated from a subset of goods and services included in CPI that change price relatively infrequently. Because this calculation is not as fickle as the full CPI number, there is a belief that it assesses future inflation expectations better. The chart below illustrates how Sticky Price CPI has been trending in an improving direction since the summer of 2022.
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