Given the limited efficacy of monetary policy to deal with food and fuel inflation, and the limits on using core CPI inflation measures, we have focused our attention on non-food manufactured products inflation as an indicator of demand-side pressures in the economy. 4  BIS central bankers’ speeches  Generally, core inflation is a derived inflation measure from the headline.
The advantage of SA is its relative ease of implementation by even small and mid-sized banks. The main problem, however, is that it would usually result in much higher capital requirements as compared to IRB. There is much less fine tuning of the risk weights, and banks have to rely on external rating agencies.