When people are unwilling to speak publicly about a certain topic, there may be an underlying fear.
The first thing we are going to do is determine the etymological origin of the underlying term that concerns us now. Specifically, we can indicate that it derives from Latin, more precisely from the word "subiacentis", which can be translated as "the one who is extending below" and that it is made up of three components:
-The prefix «sub-«, which means «underneath».
-The verb «iacere», which is equivalent to «being lying».
-The suffix «-nte», which what it does is indicate the «agent».
Concept of underlying
It is an adjective that refers to that which underlies it . The verb subyacer , for its part, is linked to remaining hidden or under something .
For example: "There is an underlying violence in all social groups that, from time to time, emerges as an explosion" , "Scientists do not find an underlying cause that explains the new outbreak of the disease" , "With his statements, the player "It showed his underlying desire to stay at the club."
A fear that flies over
Suppose a journalist is conducting an investigation into drug trafficking in a certain neighborhood. Said journalist begins to interview the neighbors, but only receives evasive and vague answers and even encounters people who do not want to talk about the subject.
For the journalist, the attitude of the people shows the underlying fear of drug traffickers : although this fear is not expressed directly, it underlies the responses and the silence.
Underlying inflation is that which does not consider the price of goods tied to factors that have nothing to do with the economy.
Core inflation
Underlying inflation is that revealed by the indicator known as the Consumer Price Index (whose acronym is CPI ) in cases where it does not consider unprocessed food or products linked to energy. This decision is due to the fact that the prices of these products are tied to significant fluctuations due to weather, wars and other factors that do not depend on the economy . In this way, underlying inflation allows us to reveal the price trend in the medium term.
When considering underlying inflation, in short, we work with products that have more stable prices. This means that core inflation presents few ups and downs and slighter changes compared to general inflation .
Other aspects that are worth knowing regarding underlying inflation are the following:
-It is an indicator that was shaped after the energy crisis that existed in the 1970s.
-Currently we can establish that it has become one of the most important parameters used by both analysts in general and companies and central banks when analyzing the existing prices in the market and, based on that , make decisions.
A type of asset
In the same way, we cannot ignore the existence of what is known as an underlying asset, which is the term used to refer to that object that can be acquired or disposed of, actually or theoretically, in the settlement of a financial derivative. .
The regulations establish that said asset must consist of interest rates, financial indices, currencies, dividends on shares, raw materials for which there may be a certain market...