It looks like core inflation will continue to run in the 1.5 to 2 percent range.  That, in historical context, remains a low rate of inflation.

I just don't see the signs--the ingredients--that would perhaps contribute to higher inflation...There may be a few things around the edges that are worth worrying about if you really want to, but the preponderance of evidence suggests that inflation is going to stay modest.

The stage is set for further economic expansion and I expect inflation will remain modest as it has for a good number of years now.

It is possible that the decline of the dollar changes the competitive landscape and makes foreign producers less competitive, and that could be inflationary.  But as long as the Fed pursues a low inflation policy, we should achieve low inflation.

I believe inflation will continue to remain subdued, it will be modest in the year ahead.

Outside of a few specific commodities, there hasn't been much in the way of price increases in the past few months.  I'm not hearing when I talk to business people that there are a lot of additional price increases coming along.

If [the recent decline in labor force participation] is cyclical, and labor force participation does begin to rise, this will mean more downward pressure on inflation. If it’s not—that is, if participation does not rise or continues to fall—this will mean the remaining slack in the economy will diminish faster, creating upward pressure on inflation sooner.

The extent to which businesses have marked up the prices of their products over the unit labor costs they face has been extraordinarily large for some time now. This large mark-up could return to more normal levels through faster growth in labor compensation or falling inflation, or through some combination of the two. Historical experience with this adjustment suggests that the restraint on inflation could be quite significant even if compensation growth did begin to move upward. The high current markup thus represents the potential for downward pressure on inflation.

Recent data, then, suggest that inflation is well controlled. The FOMC has emphasized that it is prepared, if necessary, to move more aggressively to protect the relatively low rates of core inflation that now exist.

If I thought there was some fundamental deterioration in prospect on the inflation front, I might change my assessment of the pace at which we need to move...[But I do] not see that as the most likely outcome.

Inflation will stay subdued...I don't expect inflation to accelerate in any meaningful way.  I wouldn't rule it out, but I wouldn't bet much on it.

In the long run inflation is a monetary phenomenon,a nd as long as we adhere to sound monetary policy we shouldn't have any long run inflation problem.

A scenario of solid output growth, at or just slightly above the economy's long-run potential, and steady job gains, which gradually bring the labor market into better balance, is consistent with a relatively stable price environment.  Accordingly, I expect inflation, to remain well contained in 2005, both overall and by core measures which exclude food and energy prices.

As productivity growth returns to trend, unit labor costs will probably start to rise, potentially putting pressure on prices. We already saw some indications of a shift down toward long-run productivity growth at the end of last year. Moreover, higher prices for oil and other commodities may exacerbate price pressures, as producers try to pass on some of their higher input costs.

Over time, central bankers have learned some important lessons—namely, that there is a lot of inertia in the inflation process, and that we cannot underestimate the possibility of inflation creeping in. And once an inflationary psychology takes hold, it can be difficult and costly to reverse.