FED PRESIDENT KOCHERLAKOTA: Big Jumps In Inflation Like We Just Saw Are 'Purely Transitory'

Narayana Kocherlakota is brushing off recent reports of accelerating inflation.

"[Y]ou can see that PCE inflation has risen relatively rapidly over the past three months and is now 1.8 percent-very close to the FOMC's target," he said in a speech today. "But ... many large fluctuations in PCE inflation end up being purely transitory. To formulate an accurate forecast for inflation, we need to look through these transitory fluctuations, no matter how large they might be-and that's not always easy."

Kocherlakota, a voting member of the Federal Open Market Committee, is considered one of the more dovish monetary policymakers.

More to come...