Headline inflation


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Headline inflation

A measure of the total inflation that is experienced throughout an entire economy. Headline inflation is based off of the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). In contrast, the core CPI, which is used to mearue core inflation excludes price fluctuations in the food and energy sector due to their seasonal or volatile movements. See: Consumer Price Index (CPI), Inflation

Headline Inflation

The total inflation present in an economy. That is, headline inflation indicates the percentage by which prices rise over a period of time without making any major adjustments. While headline inflation is a good indicator of the inflation that consumers feel, it may not accurately show the amount by which the value of a currency is reduced. This is because headline inflation includes changes in prices to things like food and energy, which are quite volatile and may move up or down independently of underlying inflation. For this reason, some analysts prefer to use the core inflation metric (which excludes volatile commodities) when calculating inflation. See also: CPI.
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The hike is aimed at lowering headline inflation to meet the target over the medium term.
In January 2018, headline inflation accelerated to 14.
The Bangko Sentral ng Pilipinas expects headline inflation to average 4.
The government expects headline inflation to average 4.
Measured by the Consumer Price Index, the headline inflation indicator further slowed down to 3.
While the RBI said that it was committed to keep headline inflation close to 4% on a durable basis, it also said, "The nascent recovery needs to be carefully nurtured and growth put on a sustainably higher path through conducive and stable macro-financial management.
On the other hand, there were increases last year in supply side inflationary pressure due to drought, which pushed food costs up and rising crude prices that saw headline inflation go up above the 7.
According to SBP, the average headline inflation remains within the forecast range, but core inflation has continued to increase.
We believe BSP will not be able to look through the risk of headline inflation breaching its target of 2 [percent] to 4 percent, underpinning our forecast for a total 100 basis points of policy-rate hikes, at a rate of one 25 basis point hike per quarter, to 4 percent,' Nomura analysts said.
The Inflation Monitor for October issued recently by the State Bank of Pakistan (SBP) showed prices of medicines recorded the highest increase among all non-food contributors to headline inflation.
The central bank said that a recent increase in headline inflation is temporary and added that it would moderate from December 2017.
We expect headline inflation to fall to around 23% y/y by December.