The Federal Reserve has established an inflation target, as measured by the annual change in the price index for personal consumption expenditures, of 2 percent.
The CPI, or Consumer Price Index, increase by more than 6 percent between October 2020 to October 2021.
Price levels have continued to rise, though, and inflation remains at its highest level in decades.
Updated: July 2022
The Consumer Price Index (CPI) measures the average monthly change in the price for goods and services paid by urban consumers — roughly 88 percent of the total population. ↩︎