BIS central bankers’ speeches  3  sufficiently close to 3 percent, sometimes above and sometimes below. Before 2015, inflation persistently ran around an average above 4 percent. Lower inflation has resulted from both relatively contained core price increases and declining noncore inflation. A surge in core merchandise inflation reflects a modest effect from peso depreciation on tradable goods prices.
At the same time, the core services component has remained subdued, benefiting from persistently falling telecom tariffs resulting from competition enhanced by reforms in that sector. It may also suggest the absence of significant overall aggregate demand pressures to date. Falling noncore inflation reflects reduced agricultural price increases, as well as contractions in the index for energy and government-determined prices.