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Quantifying the COVID-19 Effects on Core PCE Price Inflation

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The 12-month change in core PCE price inflation was 1.5 percent in December. Why was core inflation so low in 2020? How much of this weakness can be attributed to the COVID pandemic? And what does this mean for inflation going forward?

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  • Matteo Luciani, 2021. "Quantifying the COVID-19 Effects on Core PCE Price Inflation," FEDS Notes 2021-02-25, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfn:2021-02-25
    DOI: 10.17016/2380-7172.2875
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    File URL: https://www.federalreserve.gov/econres/notes/feds-notes/quantifying-the-covid-19-effects-on-core-pce-price-inflation-20210225.htm
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