By TheStreet Staff What Is Transitory Inflation?Inflation that moves above a steady rate for a short period and then reverts toward that steady rate is considered transitory. Also, inflation that rises temporarily is considered transitory. For example, if the inflation rate as measured by the Federal Reserve’s preferred barometer—the Personal Consumption Expenditure Price Index—moves to 8 percent in one month after being at 2 percent for a prolonged period, that move up is viewed as transitory. However, if the inflation rate continues to move at a rate higher than the steady rate already estab…