This ease in inflation was largely associated with a steady fall in food price inflation to single digit territory. Falling food prices reflected improved domestic agricultural output, better domestic weather conditions, and an easing of global food prices.
2  BIS central bankers’ speeches  Meanwhile core inflation, which excludes food prices, picked up slightly, to around 2½ percent, but remained stable in the first four months of 2014. This is indicative of improving economic activity. We are also starting to see a pick-up in business lending.