While the 12-month rate of increase in the total CPI moved up to 2.7% in February because of sharply higher energy prices, when one looks through those developments at the underlying trend of inflation, our core CPI measure (which excludes food, energy, and the effect of changes in indirect taxes) was at 1.6% in February.
Amid the high economic growth and low inflation, interest rates worldwide remained low for a prolonged period. BIS Review 38/2009  1  In this continued benign environment of high growth, low inflation, and low interest rates with growing optimism about prospects, financial and economic activity overheated and imbalances accumulated. This overheating caused a number of things to happen.