“So we need to think about how we assess — and talk about — underlying inflation as we confront this new reality,” he said. The study into whether officials can do a better job of measuring underlying inflation will be part of a scheduled five-year view of the central bank’s mandate with the government. “One question we are asking … is whether we should revise our preferred measures and our alternative measures of core inflation so they all pre-exclude mortgage interest costs. Mendes reiterated that most measures of inflation show that underlying inflation is around 2.5%. “When we looked ahead, we saw reasons to believe that underlying inflation would ease,” Mendes said.