Eduardo Amaral, Alejandrina Salcedo, Ilhyock Shim and Mark Wynne · September 2026 · BIS Quarterly Review
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.
Amaral, Eduardo, Alejandrina Salcedo, Ilhyock Shim, and Mark A. Wynne (2026). “Core inflation communication in practice.” BIS Quarterly Review, September, pp. 69–82.
@article{amaral2026core,
author = {Amaral, Eduardo and Salcedo, Alejandrina and Shim, Ilhyock and Wynne, Mark A.},
title = {Core inflation communication in practice},
journal = {BIS Quarterly Review},
year = {2026},
month = sep,
pages = {69--82},
url = {https://www.bis.org/publications/core-inflation-communication-practice.pdf}
}