Analyzing Whether Inflation Is Broad-Based or Sector-Specific

Summary

This article examines whether high inflation is broad-based or driven by specific sectors. It analyzes the distribution of price changes across categories, looking at trimmed mean and median inflation measures as alternatives to headline CPI. The article explores which sectors are contributing most to inflation and whether the Fed's 2% target is being affected by persistent versus transitory price changes. It evaluates arguments from Fed Chair Kevin Warsh about using alternative inflation metrics that strip out one-time price shocks from geopolitics or specific goods like beef.