After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by … global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise … monetary policy tightening, inflation upside risks are large. How can central banks restore control – and with it their own …

inflation target and the degree of real wage rigidity. It turns out that using core inflation rather than headline inflation is … the superior strategy. Targeting expected headline inflation, as practised by most central banks, is a viable practical … alternative to the core inflation target. …