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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Earlier in the day, government data showed Japan's core inflation rate for 2015, excluding volatile food prices, at 0.5 percent.
"This tells us that prices are moving upward, so the headline and core inflation rate gap will narrow in 2016," Pineda said.
The core inflation rate, which removes volatile items such as food, energy and tobacco, increased 0.9% in the year to May from April's 0.6%.
Worse, Japan's core inflation rate could dip into negative territory soon as a drop in crude oil prices weighs on efforts to boost prices and slay deflation.
The fall in the core inflation rate is likely to add to those concerns.
The annual core inflation rate, which excludes volatile energy and food costs, rose to 2.1 percent--the highest rate since spring 2012--from 1.7 percent in July.
"The core inflation rate has been moving sideways at a low level since mid 2010 amid the weak economy and internal depreciation in some countries.
On the other hand, the inflation rate for all items excluding food and energy, the so-called core inflation rate, increased 2.4 percent in annualized terms in May.
But stripping out more volatile fuel and food, the core CPI -- a key referent for the Federal Reserve's interest rate-setting policies -- rose 0.2 percent, the same pace as the previous two months and a 2.3 percent annual core inflation rate from May 2011.
The non-food and non-energy core inflation rate during previous month over the same month of last year was recorded as 10.8 per cent.
The Norwegian core inflation rate, measured as consumer price index adjusted for tax changes and excluding energy products (CPI-ATE), was 1% on an annual basis in November 2011.
The bank is also planning to bring down its core inflation rate to 5 percent 'over the medium term.'