Core is typically more slow-moving than headline measures, and tells us something about the persistence of inflation over the medium term. As Chart 1 (left-panel) shows, measures of underlying inflation tracked by the ECB and the Central Bank of Ireland are either trending higher or remain elevated, with the broader range of measures currently between 4 per cent and 8 per cent.
I mean the Environmental, Social and Governance risks that are usually referred to as the ESG. Both the physical climate risks of draughts, floods and other similar cataclysms, and the risks related to the period of transition towards a new model of sustainable economy must become an integrated part of the financial stability monitoring efforts.