core inflation

(redirected from Core Inflation Rates)
Also found in: Dictionary.
Related to Core Inflation Rates: Imported Inflation

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 ?
As rents rise and more businesses are forced to pass on higher costs to consumers, the core inflation rate could rise to 1.
c] is the expectation of the j-period-ahead core inflation rate made at time t conditional on period t-1 dated information, ur is the actual unemployment rate, ur* is the non-accelerating inflation unemployment rate (NAIRU), and [v.
The difference between their core inflation rates (2.
Roger, 1998; Core inflation rates as a tool of price analysis, 2000; Wozniak, 1999; Cutler, 2001; Kearns, 1998; Clark, 2001; Johnson, 1999, Cockerell, 1999).
The first set looked only at the predictive power of the difference between current headline and core inflation rates, while the second used a more flexible format.
As a matter of fact, core inflation rates - Consumer Price Index excluding food and energy - increased less in 1997 than in any year since 1965.
Moreover, there are clear signals that core inflation rates are falling, implying the prospect that within the foreseeable future we will have attained the lowest rates of inflation in a generation, an encouraging indicator of future gains in standards of living for the American people.
WHY: The July 2006 Economic Report reviews the following factors that impact the Federal Open Markets Committee's actions: -- Output data, most importantly the Gross Domestic Product -- Price inflation data and Chairman Bernanke's established inflation targets -- Employment data, including employment trends and the tight labor market -- Financial data, in particular the "real" interest rate and core inflation rates WHO: Keitaro Matsuda has managed the economic research department of Union Bank of California since 1997.
Moreover, the interest rate cut is the result of the containment of inflationary pressures, as annual headline and core inflation rates declined in January 2018 to record 17.
The committee noted that year-on-year and core inflation rates have increased since the last MPC meeting owing to the elevated global food prices, recent rupee depreciation, the expected impact of the Pay Research Bureau award, the anticipated adjustment in retail petroleum prices and recent budgetary measures.
The lower graph in each panel of Figure 1 charts the "core deviation," measured as the gap between headline and core inflation rates.
The expectation that these core inflation rates would continue to fall to some acceptable levels warranted a pause in the policy of interest rate hikes in 2006.