If the FOMC tomorrow decides to postpone raising short-term interest rates, it won't be because inflation is "too low."
So here it is. The chart above shows the level of the CPI ex-energy on a semi-log scale. From this perspective, inflation today is only a hair below the 2% per year it's averaged over the past 12-13 years. If anything in this chart stands out, it is the quickening of inflation in the 2006-2008 period.
And if we look at annualized changes in the total and core versions of the CPI over rolling six-month periods, as the chart above does, then we see that inflation is actually more than 2%: the CPI is up 2.35%, while the Core is up 2.05%. I haven't shown it on this chart, but the 6-mo. annualized rate of the CPI ex-energy is 1.88%. By these measures, the Fed should already be raising rates.