Core Inflation

The trend in core inflation has been a steady increase. In September that core inflation weighted median accounted for 7 percentage points of the 8.2% total headline rate. That's up from only 2% at the start of 2021. We find that those pass through into core inflation. If there's a big jump in oil prices, for example, initially that's a headline shock which is filtered out from core but over time it gets passed through more broadly.