But for the three months through May, core inflation rose at a 3.2 percent annual rate.

Along with an increase of the same size in 1994, this is the lowest core inflation since 1965.

Core inflation represents the long run trend in the price level.

The impact of sterling has helped core inflation hold up this year.

In the case of core inflation, housing dominated the 0.2 percent increase.

In the past, he has said that core inflation should hover between 1 and 2 percent a year.

Readings on core inflation have been elevated in recent months.

He predicted that core inflation for the year would be about the same as the 5.2 percent posted in 1990.

Core inflation has ticked lower but is still a worry for the central bank.

But with oil at around $20 and core inflation rising, that may not be the case two months from now.