core inflation

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Core inflation

Core inflation for the Consumer Price Index, the Producer Price Index or the Personal Consumption Expenditure Deflator removes the volatile food and energy prices. The Headline inflation includes these components.

Core Inflation

A measure of inflation that attempts to predict future inflation by excluding price volatility. It is thought to be a better measure of underlying inflation as it does not account for temporary price shocks. Some economists who measure core inflation exclude certain markets that tend to be volatile, such as energy and food, while others include all markets but exclude the markets that have had the greatest volatility over the last given period.

core inflation

A measure of consumer price increases after stripping out volatile components such as energy and food. Core inflation is generally considered more accurate than changes in the Consumer Price Index in representing the economy's underlying inflationary pressures.
References in periodicals archive ?
The non-food and non-energy core inflation rate during previous month over the same month of last year was recorded as 10.
Food inflation in Egypt stood at 19 per cent in June versus a year earlier, double the core inflation rate and slightly higher than pre-revolutionary levels.
The bank is also planning to bring down its core inflation rate to 5 percent 'over the medium term.
Kasim said Iraq's interest rate was currently stable at 6 percent but said the central bank was monitoring it closely as it wanted to keep the interest rate above the core inflation rate.
We were caught slightly off guard by the European Central Bank's hawkish rhetoric, which seems more political than anything else, given the current low core inflation rate in the Euro area.
As rents rise and more businesses are forced to pass on higher costs to consumers, the core inflation rate could rise to 1.
As the core inflation rate excludes goods where price movements tend to be more volatile and dependent on seasonal factors, such as energy and food products, the upward move suggests inflation is also rising as a result of a pickup in domestic demand and lower unemployment.
The monthly core inflation rate was dampened by housing costs, which were flat, and weak prices for apparel.
Egypt's core inflation rate unexpectedly surged in August, hitting 8.
While receiving key economic indicators, the ECC was informed that the monthly core inflation rate has decreased from 11.
Looking back at recent inflation history, one would like the average core inflation rate to be very similar to the average headline rate.
The pace of growth of the core inflation rate in the central part of the capital slowed.