Underlying Inflation

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Underlying Inflation

Inflation caused by a reduction in the value of money rather than price changes in volatile products. For example, rising gasoline prices may reduce the spending power of one's income, but this may be due to factors external to money such as excessive speculation. Underlying inflation measures changes to the supply and demand for money itself. See also: Core Inflation.
References in periodicals archive ?
I expect that, for a while, the risk of further declines in underlying rates of inflation will be greater than the risk of increases," he told the National Association of Business Economics.
He said longer-term trends and underlying rates of inflation pointed to a less gloomy outlook for the year ahead than other analysts are predicting.