Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Amaral
Author-Name: Alejandrina Salcedo
Author-Name: Ilhyock Shim
Author-Name: Mark Wynne
Title: Core inflation communication in practice
Abstract: Using a large language model to read central bank publications, we uncover patterns in how central banks communicate about core inflation. Two findings stand out. First, references to core inflation have become more frequent. This probably reflects its greater relevance when low and stable inflation means that headline movements are mostly driven by relative price changes, as in the pre-pandemic period. Second, the range of core inflation metrics cited has broadened. Central banks have avoided selecting a preferred gauge and instead relied on a suite of indicators to identify underlying price pressures. This expansion may introduce new communication challenges, as explaining additional measures can make messaging more complex.
Journal: BIS Quarterly Review
File-URL: https://www.bis.org/publications/core-inflation-communication-practice.pdf
File-Format: Application/pdf
File-URL: https://www.bis.org/publications/core-inflation-communication-practice
File-Format: text/html
Year: 2026
Month: September
Classification-JEL: E31, E52, E58
Handle: RePEc:bis:bisqtr:2609e