The MPC's June 2026 resolution notes that core CPI excluding precious metals stood at 2.1–2.2%. What does this specifically indicate about the nature of inflationary pressure at that time?

The MPC noted that 'Excluding precious metals, core inflation remained much lower at 2.1–2.2%', and 'This indicates that the input cost pressures... have not yet fully manifested in CPI' and 'demand pressures remain contained'. This low core-ex-precious-metals inflation confirms that the inflationary pressure was primarily external and supply-side (elevated global energy and commodity prices from the West Asia conflict), rather than domestic demand-driven. Broad demand-driven inflation would typically show up as elevated core inflation even after excluding volatile items which was not the case here.