), Targeting Inflation, Bank of England, London, pp. 81–100. 9  The target was initially specified 'in underlying terms'. For practical purposes, the underlying CPI series devised by the Commonwealth Treasury was used as the yardstick.
A key factor behind this choice was the inclusion of interest charges in the CPI for some years, which made for a perverse short-term relationship between monetary policy and inflation. From the September quarter 1998, the compilation of the CPI was changed to remove this component, replacing it with an alternative means of estimating housing costs.