The second factor that has contributed to the observed rise in global headline inflation is the marked increase in the inflation rate of the broader consumption basket. This increase has been much more dispersed across economies (left chart slide 4).
In the euro area, for example, there has so far been limited upward pressure on core inflation, which excludes more volatile prices, such as those for food and energy. Core inflation typically shows few signs of acceleration in the early stages of a recovery, as it takes time for economic slack to be reabsorbed and for underlying price pressures to build.