St. Louis Fed: There Is No Chance Inflation Will Be Out of Control Over the Next Year

A new inflation model suggests big price increases are still far away.

Orange you glad grocery prices are still relatively low?

Photographer: Jason Alden/Bloomberg
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Continued improvements in the labor market and robust wage gains in October have bolstered monetary policymakers' confidence that inflation will trend back toward their 2 percent target in the medium term.

And, according to a new model published by the St. Louis Fed, they can be even more confident that inflation won't get too far ahead of their target over the next year.