Underlying Inflation

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Underlying Inflation

Inflation caused by a reduction in the value of money rather than price changes in volatile products. For example, rising gasoline prices may reduce the spending power of one's income, but this may be due to factors external to money such as excessive speculation. Underlying inflation measures changes to the supply and demand for money itself. See also: Core Inflation.
References in periodicals archive ?
The underlying inflation rate "excluding food and beverages and energy" stood at a level of 8%.
the underlying inflation rate) in November 2018 was 2.9%, slightly smaller than that in October 2018 (3.0%), mainly due to the decreases in the prices of women's outerclothing and the smaller increases in local transport fares in November 2018.
(2012) and Mexico's Central Bank claims, a second VAR is estimated using underlying inflation rate ([[pi].sup.s.sub.t]) as an endogenous variable that substitutes for general inflation ([[pi].sub.t]), and non-underlying inflation rate ([[pi].sup.ns.sub.t]) as exogenous variable.
There is an underlying inflation rate of 10-15% linked to rising oil revenues and salary increases for 1393 that would put inflation in 1393 in the ball park of the government forecast.
The oft-cited core CPI (with OER) would reflect an underlying inflation rate of 2.2 percent, roughly 3/4 percentage points above the underlying inflation rate found elsewhere in the consumer market basket (table 1).
The annual underlying inflation rate increased to 1.3 percent in January from 1 percent a month earlier, after the bank cut its benchmark interest rate by 50 basis points to 1.75 percent in December.
For the medium term, Tsang projected an annual average growth rate of 4 percent for 2013 to 2016, while the underlying inflation rate is expected to average 3.5 percent.
Added to an underlying inflation rate of 8.5 percent, that would mean price hikes of between 20 and 30 percent -- a large jump, "but not a major catastrophe," said the analyst.
We show that serial correlation in the underlying inflation rate ties these two observations together and explains them.
''The underlying inflation rate in 2008 is estimated to rise to 4.5 percent...upon implementation of the various one-off measures proposed in this budget, the inflation rate will fall to 3.4 percent in 2008,'' Tsang said.
Other relative prices must then fall, so that over the intermediate to long term, the average rate of the price rise tends to equal the underlying inflation rate as determined by monetary policy.
The underlying inflation rate according to UND1X increased by 1.0% (0.7% in August).