Of concern is that core inflation, which excludes the more volatile food and energy components from the consumer price index (CPI) basket, remains sticky. The pressure on core inflation has been mainly driven by repriced imported goods costs. But apart from higher imported goods costs, one needs to keep an eye on core services inflation.
(2017), “Asset purchases, financial regulation and repo market activity”, speech at the ERCC General Meeting on “The repo market: market conditions and operational challenges”, Brussels, 14 November. 27 See also Duffie, D. and A. Krishnamurthy (2016), “Passthrough Efficiency in the Fed’s New Monetary Policy  Setting”, paper prepared for the 2016 Economic Policy Symposium Proceedings, Jackson Hole: Federal Reserve Bank of Kansas City.