The Globe and Mail reports in its Friday, Oct. 3, edition that the Bank of Canada is exploring changes to how it measures preferred inflation metrics to better understand the impact of external shocks on the economy. A Reuters dispatch to The Globe reports that deputy governor Rhys Mendes noted that inflation is becoming more volatile. This reassessment of underlying inflation will be part of a five-year review of the BOC's mandate, which is set for renewal next year. The BOC has affirmed that its goal of maintaining overall inflation at 2 per cent will remain unchanged. The BOC uses two core inflation measures that exclude volatile items to better gauge underlying pressures. CPI-median takes into account the central components of the Consumer Price Index basket while CPI-trim excludes the most extreme price changes. Deputy governor Rhys Mendes says, "We're asking ourselves if there are ways we could improve our existing measures of core inflation." He notes that every measure -- no matter how well-designed -- would at times send misleading signals. One option under review is multivariate core trend inflation, which isolates persistent inflation and categorizes it into two parts.