Furthermore, such pressures tend to have persistent, rather than erratic effects, such as those that may be due to transitory developments or supply fluctuations. That is why, in addition to the headline inflation data published by the Central Statistics Office, the Bank examines the underlying inflation trend, or core inflation.
The previously optimistic forecasts for global economic growth have been revised downwards in the most dramatic fashion. More and more developed economies are forecasting imminent and prolonged recessions, with downward growth revisions almost on a weekly basis. These include the UK, the forecasts of the Euro area, Japan and the US economies to name but a few.