Following the Federal Reserve's recent meeting this month, the central bank sharply raised its near-term inflation forecast. It now expects 2021's rate to come in at 4.2%, up from a 3.4% estimate in June. For core inflation, the Fed is now calling for a 3.7% increase compared with its prior 3% estimate.
For 2022 and 2023, the Fed is looking for 2.2% inflation in each year, falling to 2.1% in 2024. It nudged next year's prediction up from 2.1%.