Comparing core PCE inflation to the 2011-19 average, most of the current overshoot comes from core services ex-housing, which is running 0.7 pp above the prepandemic average (down from +0.8 pp one year ago). Housing is now 0.3 pp above its prepandemic average (down from +0.5 pp one year earlier) Core goods is 0.2 pp above its prepandemic average. This is up from one year ago, when it had returned to the prepandemic average. Note: Core PCE was below the Fed's 2% target before the pandemic, so not all of these components have to go back to their prepandemic average to reach the 2% target.