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 ?
In February, month-on-month cumulative inflation was influenced by core inflation by 0.
The core inflation has remained subdued since November 2015 because of a tighter monetary policy and is expected to go up.
Among 89 commodity groups of CPI, the core inflation covers the price movement of 43 items.
Core inflation excludes volatile commodities such as food and energy.
Core inflation is also set to be steady within the 2.
non-food and non-energy core inflation has been observed as 4.
5 percent until core inflation reaches 2 percent also has "some attraction" as a policy option, he said in remarks prepared for delivery in London.
Moreover, core inflation has risen even though weak oil prices have led to lower prices for some elements of the core CPI basket, such as airline fares, which fell 1.
ET-M: As was stated in my October Monetary Policy State- ment, the BoU forecasts that core inflation will rise over the next nine months to a year, peaking in the third quarter of 2016 at just over 10%.
In this article I use a statistical forecasting model--called a Bayesian vector autoregression or BVAR--to explain the factors responsible for the stubbornly low levels of core inflation over the past four years.
Core inflation (CPI excluding food items) eased for the second consecutive month in May, from 3.
According to the report, core inflation slowed down marginally in April but remains relatively high at 3.