BIS central bankers’ speeches  overreacting to the temporary – and give the public confidence that inflation will return to the right track. For this reason, the Bank of Canada, along with many other central banks, uses a number of measures to calculate core inflation, which are designed to minimize the influence of transitory price movements (Table 2).
An effective core measure must have four key properties. It must be less volatile than total inflation; closely track long-run movements in the total CPI (in other words, be “unbiased”); be related to the underlying drivers of inflation, notably the output gap, in order to reliably predict future trend movements in the total CPI; and be easy to understand and explain to the public.