Percentage Change in PCE Price Indexes
5 _ Actual 3 Projected
2 _ ’
2001 2006 2011 2016 2021 2026
CBO anticipates that inflation will rise to the Federal Reserve’s goal of 2 percent over the next two years,
which is consistent with CBO’s projection of the diminishing slack in the economy.
PCE = personal consumption expenditures; the core rate excludes prices for food and energy.