It is noteworthy that this increase is happening as the New York Fed's
Underlying Inflation Gauge (UIG) hit another high for this recovery, rising from 3.01 % in January to 3.06 % in February.
The Underlying Inflation Gauge (UIG) includes a wide range of nominal, real and financial variables in addition to prices and focuses on the persistent common component of monthly inflation.
For instance, the New York Federal Reserve has an inflation measure,
the Underlying Inflation Gauge (UIG), that aims to capture sustained movements in underlying inflation from a broad set of price, real economic activity, and financial data.
Not exact matches
U.S. consumer prices increased in January, with a
gauge of
underlying inflation posting its largest gain in 12 months, bolstering views that price pressures will accelerate this year.
The challenge for monetary policy makers is to look at this complex and changing picture of price changes and try to
gauge the forces that are operating on
underlying inflation and so judge the likely future path of overall
inflation.
CPI
inflation was 2.4 per cent over the year to the March quarter, with this rate also a good
gauge of the Bank's assessment of
underlying inflationary pressure.
Many Fed officials believe the best way to measure whether their efforts to keep
inflation at bay are working is to look at measures of
underlying inflation, because that is a better
gauge of where
inflation is headed.