Cleveland CPI and the Factors That Determine Inflation

The video discusses various inflation metrics, focusing on the Cleveland CPI and its differences from core inflation. It highlights the volatility in UK inflation due to factors like airfares. The impact of the service sector and real estate on inflation is examined, especially in the context of a rental economy. The Federal Reserve's approach to inflation, including the concept of overshooting targets, is also explored.

What is the significance of rental prices in the context of CPI data as mentioned in the text?

Discuss the concept of 'overshoot' in relation to inflation targeting as presented in the text.