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Core Inflation

   Also found in: Wikipedia 0.01 sec.
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.

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.


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On a year-on-year basis, the rate of core inflation fell to 2.
it was introducing a core inflation index for the Arab country, which has been seeking to bring down price rises that peaked at more than 20 per cent in 2008.
Normally, one would expect that in the aftermath of a deep recession such as the UK has just experienced, core inflation would fall steadily and dramatically as aggregate demand collapses and unemployment rises sharply (which it has).
 
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