Underlying price pressures are still mounting in most major developed economies despite the recent falls in headline inflation, indicating that central banks will have to keep tightening policy in the coming months.
Core inflation — which excludes changes in food and energy prices, and is viewed by rate-setters as a better measure of the persistence of price pressures — is accelerating in many parts of the world according to an analysis of official statistics by the FT.
Core rates were still rising in November in the majority of the 33 countries tracked by the FT and remain well above the 2 per cent level of inflation that most central bankers target.