The Bank uses the CPI for all items less fresh food, or the “core CPI,” in determining its medium-term outlook for prices in the Outlook Report. Energy prices are included in the core CPI because they did not have a statistically significant impact on CPI movements in the long term.
However, as a sharp fall in energy prices since the latter half of the previous year has amplified the volatility in the core CPI, it has become more important to assess the underlying trend in inflation in a comprehensive manner, not only with the core CPI but also with multiple indicators.