``The core PCE is the Fed's preferred inflation measure and is running below its 2 percent target. However, other inflation measures are above the PCE price indexes. The consumer price index (CPI) is currently at 2.1 percent on a year-on-year basis and the core CPI is up 2.2 percent. "Inflation will gradually accelerate over the next couple of years due to higher energy prices and stronger wage growth that leads firms to raise prices," said Gus Faucher, deputy chief economist at PNC Financial in Pittsburgh.'' -- We don't think it's strong wages or consumer spending that are driving resurgent inflation (indeed, other evidence suggests both areas are actually weak)...

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