Central banks could “accommodate” higher core inflation to help shield households from energy shocks, a working paper by a Bank of Italy researcher says.

Nicolò Gnocato of the Bank of Italy’s economic outlook and monetary policy directorate says in the paper that the unemployed devote a greater share of their low overall consumption to energy. This means they are affected more acutely by energy price shocks than the employed.

“Therefore, higher energy prices end up weighing more on the jobless,”