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 ?
Together with a reduction in import taxes on vehicles, this has fed through to a sharp rise in imports, a deterioration in the nonoil current account balance, rising core inflation, and continued weakness in the structure of public finances.
Core inflation measured by 20 percent weighted trimmed mean or CPI
Similarly the non-food and non-energy core inflation has been observed as 3.
Besides, the core inflation rate registered a monthly 0.
The Parts Are More Than the Whole: Separating Goods and Services to Predict Core Inflation.
Core inflation, which excludes the most volatile components of unprocessed food and energy, rose 0.
Core inflation, which excludes volatile energy and unprocessed food prices, dipped to a new euro-era low of 0.
The central bank of Singapore has said that core inflation in the nation would remain firm.
Core inflation was mainly driven by a seasonal increase in the home furniture segment during the summer months (4.
Twelve-month inflation dropped to 4 percent by end-2013 and core inflation remained in single digits.
However, models that economists have developed to forecast core inflation have not fared well in general.
However, a State Bank of India report stated, " RBI may keep rates steady in the January 2014 review and wait for more information, particularly on the trajectory of food inflation, before deciding the next course of policy action because core inflation has remained more or less flat in December 2013.