[9] In overall terms, the range is not only elevated but also wide, indicating that there is a high level of uncertainty about underlying inflation. In trying to gain further understanding about underlying inflation dynamics, it is worthwhile to examine momentum in inflation dynamics.
While the typical focus is on an annual frequency (the price level today compared to the price level one year ago), this necessarily implies some inertia in inflation measurement, given the high overlap on a month-to-month basis in annual inflation calculations.