Core inflation is stuck at about 4 percent, double the Federal Reserve's 2 percent target, but far from the crisis levels of 2022. The challenge lies in normalizing the final few percentage points in specific categories.
There are two main views on the situation: one suggesting temporary factors will resolve the inflation issue naturally, while the other warns of inflation slipping out of control or the central bank overregulating and harming the economy.
Excess inflation is primarily attributed to auto insurance and housing costs, linked to previous spikes in car prices. The expectation is for prices to stabilize once underlying factors normalize.
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