Second, a risk of returning to deflation is considered low given that prices of a wide range of consumption items, excluding energy, have been rising. While the Bank assesses the underlying trend in inflation based on various indicators, typical indicators are mainly the core CPI and trimmed mean. Both exclude temporarily volatile items in order to grasp the trend behavior of prices.
They often are utilized to project future prices owing to their relatively high predictive power. The difference is that the core CPI always excludes the same items that tend to show high volatility from the consumption basket weight.