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As we think? Core inflation, which strips out the volatile food and energy categories, has settled near the 2 percent target level in recent months. But Federal Reserve Bank of San Francisco economist Adam Shapiro wrote on Monday that rising prices were likely attributable to “idiosyncratic factors” rather than “overall economic conditions.” Examples of idiosyncratic factors include ripple effects from Verizon’s change in cellphone plan pricing and a 10 percent increase in fees for financial services such as automatic tellers and credit cards. “Surprisingly low inflation” despite a tight labor market is “the biggest reason for caution,” Furman writes, not.
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