U.S. Inflation: The Undercurrents of Seemingly Calm Inflation

After the turbulence of the 1970s and early 1980s, U.S. inflation entered a remarkably stable period that has persisted for the past three decades. As Figure 1 shows, U.S. core Consumer Price Index (CPI) inflation (which excludes the more volatile energy and food categories) has remained in the 1%–3% range in recent years.