The Bank for International Settlements published an analysis finding that central banks have referred to core inflation more frequently and broadened the range of measures they cite over the past two decades. The study used a large language model to review about 8,000 monetary policy statements, meeting minutes and reports from 24 advanced and emerging market economies since 2006. References declined during the pandemic inflation surge but regained prominence during the subsequent disinflationary phase as central banks focused on inflation persistence. Rather than selecting a preferred measure, central banks increasingly use a suite of indicators to assess underlying price pressures. Measures excluding predetermined items, typically food and energy, remain the principal gauge, while trimmed means and composites have become more common. The analysis warns that a wider indicator set can produce conflicting signals and obscure which measures carry the most weight, requiring precise definitions and transparent interpretation for specialists and concise public messaging anchored in headline inflation targets and key price drivers.
2026-09-14Bank for International Settlements
Bank for International Settlements analysis finds central banks use more and broader core inflation measures
The Bank for International Settlements found that central banks increasingly discuss core inflation and use a broader suite of measures to assess underlying price pressures. Its review of about 8,000 publications from 24 economies also identified communication risks when indicators conflict or their relative weight is unclear.