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A numerical benchmark exercise has been under way for comparing the results of different calculational methods/data sets used for the analysis of light water reactor (LWR) configurations employing Pu inert matrix fuels (IMFs). The first phase of the exercise was devoted to infinite arrays of identical IMF cells. The main feature investigated in the second phase has been the influence of the neutron spectra in UO2 and MOX cores on individual IMF cells. Phase 3 is concerned with the more realistic situation of an IMF assembly surrounded by UO2 assemblies. Significant discrepancies have been observed for power peaking effects and delayed neutron parameters in Phase 2. In Phase 3, neutron balance differences for the IMF, particularly at EOL, are found to be significantly larger than were observed in Phase 1.