0% is too difficult to hit. Their price measurements have a lag. Deflation is bad. It's easier to just try to target a low, positive number.
I see 5-6% annual inflation in what I buy
What are you buying?
Or do you think Jim W. is way off?
Yes, his imaginary calculations are way, way off.
What I am seeing:
Healthcare ave.yearly increase: 12%-18%
PG&E elect. & nat. gas: ave. 8% increase per year.
CA gasoline @ about $3.55/gal. (fluctuates between $2.25 & $4.25 over prior decades).
Restaurants/fast food observed about 5%-7% per year over the last 15 years.
Misc. “Home Goods” (appliances, small electrics, etc.) about 2-3% per year.
Groceries, pretty stable, maybe 1%-2% per year over the last 10 years.
Several of those may be “CA specific” due to crazy regs..
My personal “inflation index” is my Carl’s, Jr./Hardees index: Southwest Chicken Sandwich large combo w/fries-drink = $7.25 in 2007....same combo in the same city in 2019 = $12.50...~73% increase over 12 years equals about 6% inflation per year. My math may be suspect, but my perception/feelings is/are key! ;-)