evidence: - Inflation, which was slightly lower in 2022 than in 2021 but higher than in any other year since 1981, continues to exceed the Federal Reserve’s long-run goal of 2 percent through 2023 and 2024 before nearing that rate by 2026. As measured by the price index for personal consumption expenditures (PCE), inflation is 3.3 percent in 2023, reflecting the lagged effects of higher home prices on rents as well as tight labor markets.1 In 2024, inflation falls to 2.4 percent as labor markets soften and increases in rents slow. After 2024, inflation approaches the Federal Reserve’s goal of 2 percent, reaching 2.2 percent in 2025 and 2.1 percent in 2026. [...] Price and Wage Inflation [...] Those large upward revisions are the result of momentum in recent historical inflation data that suggests more persistence in inflation across many sectors of the economy than CBO anticipated last May. Additionally, supply-side disruptions have remained greater than CBO previously forecast. In CBO’s current projections, price increases for most goods and services, especially shelter services, are larger than the agency expected them to be last May.