Commodity price rises don't spur core inflation

Spikes in commodity prices have tended to have a muted impact on core inflation in recent years, a paper published in the latest of the Bank for International Settlements' Quarterly Review has found.

The research investigates the impact of the recent rise in food and fuel prices on headline inflation and shows that core inflation has not reflected gains in headline inflation in recent years in most of the countries surveyed. "This evidence suggests an absence of strong second-round effects of