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 ?
However, annual average core inflation increased to 4.7 percent in July from 4.4 percent in June.
Core inflation continue to rise on account of rise in HRI and exchange rateCore inflation (NFNE) inched up by +1.7% m/m to +7.8% reflecting the underlying price increase of mainly house rental index and recent budgetary measures.
Although deceleration in core inflation is a welcome development, this may be a short-term relief as some measures (significant rupee depreciation, unfreezing of energy prices, etc) taken by the government to stabilise the economy will have an adverse near-term effect on CPI.
In May last year, the core inflation rate was 7% and the discount rate was 6%.
After reaching an all-time high of 8.2% in 2018, core inflation should decrease to 7.5% in 2019 and 7.6% in 2020.
Specifically, imported core inflation, with a weightage of 34.6 per cent, plays an equally important role as against domestic core, which has a weightage of 20.4 per cent.
However, the core inflation rate (excluding food and energy) stood at 7.1% in January 2019, compared to 7.9% in December 2018, i.e.
"As we indicated previously, the uptick in core inflation was rather an aberration brought about by one single factor of higher transport cost due to adjustment in transport fare.
Headline inflation was controlled with the support of lower core inflation coupled with volatile foods (VF) inflation that was below the historical trend.
A number of emerging economies are facing mounting capacity constraints and, as a result, core inflation is set to rise further over the next six months or so," said the report from Capital Economics.
The core inflation has inched up to a four years high of 8.2 percent in October 2018, according to the data released by Pakistan Bureau of Statistics (FBS).
The Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 8.2 percent on (YoY) basis in October 2018 as compared to an increase of 8 percent in the previous month and 5.3 percent in October 2017.